46 47 48 Periods per year = 49 Number of years = 50 Price on Par...

 

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46 47 48 Periods per year = 49 Number of years = 50 Price on Par (%) 51 Annual YTM= 52 Par Value = 3456 Problem #5 BFM Enterprises has a semiannual coupon bond that matures in 12 years. The yield to maturity is 6.25% and the face value is $1,000. If the bond is currently selling at 105.5% of par value, what is the coupon rate? 54 55 2 12 105.50% 6.25% $1,000 Nper Price YTM Par Value PMT CPN per Per CPN per Year = 24 $1,055.00 3.13% $1,000 46 47 48 Periods per year = 49 Number of years = 50 Price on Par (%) 51 Annual YTM= 52 Par Value = 3456 Problem #5 BFM Enterprises has a semiannual coupon bond that matures in 12 years. The yield to maturity is 6.25% and the face value is $1,000. If the bond is currently selling at 105.5% of par value, what is the coupon rate? 54 55 2 12 105.50% 6.25% $1,000 Nper Price YTM Par Value PMT CPN per Per CPN per Year = 24 $1,055.00 3.13% $1,000

Answer rating: 100% (QA)

To find the coupon rate of the bond we can use the formula for the present value of a bond PV C1 fra... View the full answer