Question
Corp has bonds on the market with 18.5yrs maturity, a YTM% of11, and a price=$938. The bonds make semiannual payments. Required: What's the coupon rate?
| Corp has bonds on the market with 18.5yrs maturity, a YTM% of11, and a price=$938. The bonds make semiannual payments. |
| Required: |
| What's the coupon rate? Hint: Solve for the semiannual payment. Multiply it by 2 to make it annual. Divide the result by the face value to get the percentage coupon rate. (Do not round intermediate calculations. Round your whole percentage to 2 decimal places (e.g., 8.16).) |
| Coupon rate | % |
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
4th Edition
1492559733, 978-1492559733
