Question
1. You paid $10673 for a 15-year 7 percent coupon bond. If the yield to maturity of the bond is 4.1%, what is the face
1. You paid $10673 for a 15-year 7 percent coupon bond. If the yield to maturity of the bond is 4.1%, what is the face value (in $) of the bond? Round your answer to at least 2 decimal places.
2. Google is offering a 10-year coupon bond with face value $15,000. The current price of the bond is $13592. If the yield to maturity of the bond is 4.6%, what is the coupon rate (in %) of the bond? Round your answer to at least 2 decimal places.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 To find the face value of the bond we can use the present value formula PV C 1 1 rn r F 1 rn Where ...
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Step: 2
Step: 3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
