Question: Two finance questions that I need help with solving 1. John purchased a bond paying semiannual interest for a price of $1000. Yields on bonds

Two finance questions that I need help with solving

1. John purchased a bond paying semiannual interest for a price of $1000. Yields on bonds of similar risk are 9.8%. The bond has a face value of $1000. Based on this information, what is the coupon rate of the bond? 2. A car company coupon bond has a coupon rate of 6.5% and pays annual coupons. The next coupon is due tomorrow and the bond matures 26 yrs. From tomorrow. The yield on the bond issue is 6%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be? (Round to nearest cent)

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