Question: please fill out out the question marks and write the work on paper please 0 1 2 20 + 19 1 + ? 7. O
0 1 2 20 + 19 1 + ? 7. O ? 7. PV= 1205 + 1000 N=5*4=20 FV=1000 1/Y=7/4=1.75 PV=-1205 CPT PMT = ? = 29.7367 Coup rate = (29.7367*4)/1000 = 11.89% 1205 = ? (1+0.01751 ? ? 1000 + +... + + (1+0.0175)2 (1+0.0175)20 (1+0.0175)20 1 1 =?* 10.0175 0.0175(0.0175)20) )} 1000 + (1 + 0.0175 20 Ex 7) Finding the coupon rate: The ABC Corporation bonds mature 5 years from today. The coupons are paid annually and returns the face value of $1000 at maturity. The yield to maturity is 7% and the price of the bond is currently $1205. What is the coupon rate on this bond? Ex 8) In the previous Ex 7, assume instead that the coupons are paid quarterly, with everythin else the same. What is the coupon rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
