Question: You find a zero coupon bond with a par value of $10,000 and 13 years to maturity. If the yield to maturity on this bond

 You find a zero coupon bond with a par value of
$10,000 and 13 years to maturity. If the yield to maturity on

You find a zero coupon bond with a par value of $10,000 and 13 years to maturity. If the yield to maturity on this bond is 4.5 percent, what is the dollar price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Kiss the Sky Enterprises has bonds on the market making annual payments, with 13 years to maturity, and selling for $930. At this price, the bonds yield 10.0 percent. What must the coupon rate be on the bonds? O 10.00% 09.11% 18.03% 09.01% 9.69%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!