can you solve it and explain it

if cr >r - p>fv preimiu

if cr

ifcr=r - p=fv par

Example 1: Key components of a corporate bond Let's say you see the following price quote for a corporate bond: Price=91.5%of$1000$915;Annualcoupon=6.35%1000$63.50Maturitydate=June15,2010;IfboughtandheldtomaturityYield=15.438%CurrentYield=$Coupon/Price=$63.5$9156.94% 6.1 (A) Key Components of a Bond Example 1: Key components of a corporate bond Let's say you see the following price quote for a corporate bond: Issue Price Coupon(\%) Maturity YTM\% Current Yld. Rating Price =91.5% of $1000$915; Annual coupon =6.35%1000$63.50 Maturity date = June 15,2010 ; If bought and held to maturity Yield =15.438% Current Yield =$ Coupon/Price =$63.5$9156.94% 6.1 (A) Key Components of a Bond Figure 6.1 Merrill Lynch corporate bond. - Par value: Typically $1000 - Coupon rate: Annual rate of interest paid. - Coupon: Regular interest payment received by holder per year. - Maturity date: Expiration date of bond when par value is paid back. - Yield to maturity: Expected rate of return based on price of bond Example 1: Key components of a corporate bond Let's say you see the following price quote for a corporate bond: Price=91.5%of$1000$915;Annualcoupon=6.35%1000$63.50Maturitydate=June15,2010;IfboughtandheldtomaturityYield=15.438%CurrentYield=$Coupon/Price=$63.5$9156.94% 6.1 (A) Key Components of a Bond Example 1: Key components of a corporate bond Let's say you see the following price quote for a corporate bond: Issue Price Coupon(\%) Maturity YTM\% Current Yld. Rating Price =91.5% of $1000$915; Annual coupon =6.35%1000$63.50 Maturity date = June 15,2010 ; If bought and held to maturity Yield =15.438% Current Yield =$ Coupon/Price =$63.5$9156.94% 6.1 (A) Key Components of a Bond Figure 6.1 Merrill Lynch corporate bond. - Par value: Typically $1000 - Coupon rate: Annual rate of interest paid. - Coupon: Regular interest payment received by holder per year. - Maturity date: Expiration date of bond when par value is paid back. - Yield to maturity: Expected rate of return based on price of bond