a. Consider a bond issued at par. The annual coupon is 8 percent and frequency of coupon

Question:

a. Consider a bond issued at par. The annual is 8 percent and frequency of is semiannual. How would the YTM of this bond be reported in most of the European markets?
b. The market price of a two-year bond with annual is 103 percent of its nominal value. The annual to be paid in exactly one year is 6 percent. Compute its
i. YTM (European method).
ii. YTM (U.S. method). 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...