Question: Please show all work Present Value and Yield to Maturity. (a) A 15 year coupon bond with face value $250,000 and a 5% coupon rate

Please show all work

Present Value and Yield to Maturity. (a) A 15 year coupon bond with face value $250,000 and a 5% coupon rate has a yield to maturity i = 0.06. What is the value of the annual coupon payment? What is the price of this coupon bond?

Answer: C = $12,500 and PCB = $225,719.39

(b) A 10 year coupon bond with a 4% coupon rate and yield to maturity i = 0.05 sells for a price of $9,227.8245. What is the face value of the bond?

Answer: FV =$10,000

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