Question
A 5-year Circular File bond with a face value of $1,000 pays interest once a year of $60 and sells for $952. a. What are
A 5-year Circular File bond with a face value of $1,000 pays interest once a year of $60 and sells for $952. a. What are its coupon rate and yield to maturity? (Do not round intermediate calculations. Enter the coupon rate as a percent rounded to 1 decimal place and the yield to maturity as a percent rounded to 2 decimal places.) Coupon rate 6 % Yield to maturity 7.18 % b. If Circular wants to issue a new 5-year bond at face value, what coupon rate must the bond offer? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Coupon rate 7 %
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