Question
Brian Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest
Brian Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $975. What is the bond's nominal coupon interest rate?
Hint:
- APR = ?
- Periodical rate = rate for each 6-month = ?
- PV = ??
- FV = ??
- pmt = ??
Brian Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $975. What is the bond's nominal coupon interest rate? Hint: APR = ? Periodical rate = rate for each 6-month = ? PV = ?? FV = ?? pmt = ??
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Authors: M. Durrani, G. Boocock
1st Edition
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