Question
1. A semiannual coupon bond with face value of $1,000 has a coupon rate of 7% and matures in 10 years. The market-determined discount rate
1. A semiannual coupon bond with face value of $1,000 has a coupon rate of 7% and matures in 10 years. The market-determined discount rate on this bond is 11%. What is the price of the bond?
2. A 5 year semiannual coupon bond with a face value of $1,000 trades at $860. The market-determined discount rate is 6%. What is the coupon rate? Answer in percent and round to two decimal places.
3. A semiannual coupon bond with coupon rate of 5% and face value of $1000 trades at $1050. It matures in 7 years. What is its yield to maturity (YTM)?
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Financial Ratio Analysis
Authors: Andrew P.C.
1st Edition
1973493381, 978-1973493389
