Question
Corp has bonds on the market with 18.5yrs maturity, a YTM% of11, and a price=$938. The bonds make semiannual payments. The face value is $1,000.
| Corp has bonds on the market with 18.5yrs maturity, a YTM% of11, and a price=$938. The bonds make semiannual payments. The face value is $1,000. |
| Required: |
| What's the coupon rate? Hint: Solve for the semiannual payment (PMT). Multiply it by 2 to make it annual. Divide the result by the face value to get the percentage coupon rate. This is exactly like the book and video examples. (Do not round intermediate calculations. Round your whole percentage to 2 decimal places (e.g., 8.16).) |
| Coupon rate | % |
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Financing Failure A Century Of Bailouts
Authors: Vern McKinley
1st Edition
1598130498,1598130560
