Question: Problem 1 0 - 1 6 ( Algo ) Consider a bond paying a coupon rate of 1 2 . 2 5 % per year
Problem Algo
Consider a bond paying a coupon rate of per year semiannually when the market interest rate is only per halfyear. The bond has six years until maturity.
Required:
a Find the bond's price today and six months from now after the next coupon is paid. Do not round intermediate calculations. Round your answers to decimal places.
b What is the total rate of return on the bond? Do not round intermediate calculations. Round your answer to decimal places.
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