Question: A $1,000 par value bond that pays interest annually just paid $86 in interest. What is the coupon rate? Please share your answer as a
A $1,000 par value bond that pays interest annually just paid $86 in interest. What is the coupon rate? Please share your answer as a %.
1B. A 7.5% coupon, 9-year annual bond is priced at $824. What is the current yield for this bond? Please share your answer as a %.
1C. What is the price of a $1,000 par value, semi-annual coupon bond with 20 years to maturity, a coupon rate of 10.68% and a yield-to-maturity of 8.15%?
1D. What is the price of a $1,000 par value, 11 year, annual coupon bond with a 8.04% coupon rate and a yield to maturity of 4.52%?
1E. You bought a 15-year, 6.33% semi-annual coupon bond today and the current market rate of return is 5.64%. The bond is callable in 4 years with a $56 call premium. What price did you pay for your bond?
Step by Step Solution
3.47 Rating (160 Votes )
There are 3 Steps involved in it
SOLUTION 1A The coupon rate is calculated by dividing the annual ... View full answer
Get step-by-step solutions from verified subject matter experts
