Question
Facebook has just issued its first bond. Its a 10-year issue with $1,000 face value and a 4% coupon rate. What is the r for
Facebook has just issued its first bond. Its a 10-year issue with $1,000 face value and a 4% coupon rate. What is the r for this bond?
Hint, r is in time units of 6 months, with semi-annual compounding.
(Do not round intermediate calculations and do not enter your answer as a percent. Round your answer to 3 decimal places, e.g., 0.315 instead of 31.5%.)
Facebook has just issued its first bond. Its a 10 year issue with $1,000 face value and a 4% coupon rate. What is the yield to maturity?
(Do not round intermediate calculations and do not enter your answer as a percent. Round your answer to 3 decimal places, e.g., 0.315 instead of 31.5%.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started