ABC issued new bonds on Jan 1, 1991. The bonds sold at par of $1,000 have a

Question:

ABC issued new bonds on Jan 1, 1991. The bonds sold at par of $1,000 have a coupon of 12% and mature in 30 years. Interest is paid semi-annually on June 30 and Dec 31. What was the YTM on Jan 1, 1991? What was the price on Jan 1, 1996, if interest rates had fallen to 10%? What is the current yield on the bond on Jan 1, 1996, given the previous price? On July 1, 2014, the bonds will sell for $916.42, what will be the YTM?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...