Question
1. Assume semi-annual payments. What is the coupon rate for a 18-year bond with a yield of 4.796% and a price of $1,072.02? 2. Investors
1. Assume semi-annual payments. What is the coupon rate for a 18-year bond with a yield of 4.796% and a price of $1,072.02?
2. Investors with very high tax rates should always prefer corporate bonds due to taxation. (T/F)
3. Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given "t" do not multiply it by 2 and remember that price quotes are as a percentage of $1000. This means to get the price, move the decimal over 1 place. For example, a price quote of 99.99 is equal to a price of $999.9.)
Bond | Coupon Rate | Yield | Price Quote | t |
A |
| 2.048 | 108 | 4.338 |
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