The present value of a dollar to be received one year from today is 0.91743. The present

Question:

The present value of a dollar to be received one year from today is 0.91743. The present value of a dollar to be received two years from today is 0.82645. What is the price of a bond that pays an annual of 8 percent and matures in two years? Find its yield to maturity.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...