Question: Please round all values to a nearest cent, i.e. $2.3572 = $2.36, and interest rate to 2 decimals when expressed in %, i.e. 2.355691% =
Please round all values to a nearest cent, i.e. $2.3572 = $2.36, and interest rate to 2 decimals when expressed in %, i.e. 2.355691% = 2.36%. A two-year bond pays semi-annual coupons, yields 6.582% (semiannual APR), and is traded at the 10% premium to its face value, i.e. 1.1 Face Value. What is this bonds coupon rate as a semi-annual APR?
Please show all steps and formula used. I am an art history major! :)
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