A company has issued 1 million units of a bond with a 12-year maturity and X% coupon rate. Every bond has a par value of $1,000, sells at $973.41, and coupons are paid semi-annually. The effective yield to maturity (YTM) on the bond is 6%. Suppose the firm sets up a sinking fund in which it will make semi-annual payments that will serve to accumulate the total face value of all the bonds. The sinking fund pays an annual interest rate of 2.4% compounded semi-annually. What is the company's total semi-annual payment (i.e., coupon and sinking fund)?

Answer rating: 100% (QA)

Given Information Number of bonds N 1000000 Par value per bond F 1000 Market price per bond P 97341 ... View the full answer