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A. A 10-year $1,000 face value coupon bond is currently sold at $1,033. Assume the yield to maturity of this coupon bond is 7.26% and
A.
A 10-year $1,000 face value coupon bond is currently sold at $1,033. Assume the yield to maturity of this coupon bond is 7.26% and the coupon bond pays the interest payment annually.
What is the annual coupon rate of the bond?
Please round your answer to the fourth decimal. (e.g. 0.1234)
B.
A $10,000 face value discount bond maturing in one year is currently selling for $9,094.41.
What is the yield to maturity to this discount bond?
Please round your answer to the fourth decimal. (e.g. 0.1234)
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