Question
A coupon bond is sold at $900 (at a discount from its face value of 1,000). The investors in the market currently require a 8%
A coupon bond is sold at $900 (at a discount from its face value of 1,000). The investors in the market currently require a 8% yield (annually compounded) on the bond. Which of the following is most likely the coupon rate for the bond if the coupon is paid annually?
answer is 6%. please help explain this questions step by step
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
