I am having difficulty transitioning a bond value function into a coupon rate function. I believe it should be based around modifying the bond value function, but I am not seeing the process. Any help would be appreciated. After writing the correct coupon rate function, I will have to verify it works with some known inputs.

The code I am using for this calculation are below:

t <- seq(1, 4, 1)

pv_factor <- 1 / (1 + 0.05)^t

bond_value <- 1157.449

c_rate <- (1157.449 - 1200 / (1+0.05)^4) / (1200*sum(pv_factor))

c_rate

[1] 0.0400001

but struggling on how to fit them all together, but here is what I have so far

c_rate <- function(bond_value, par, ttm, y) {

• t <- seq(1, ttm, 1)
• cf$t <- data.frame(t)
• cf$pv_factor <- data.frame(par / (1 + y)^t)
• cf$pv <- bond_value - cf$pv_factor
• cf$calc <- 1 - (sum(cf$pv / cf$pv_factor))
• }