Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate
Question:
Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity.
a. Find the bond’s price today and six months from now after the next coupon is paid.
b. What is the total (6-month) rate of return on the bond?
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Related Book For 
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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