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Missing information on a bond. Your broker faxed to you the following information about two annual coupon bonds that you are considering as a potential
Missing information on a bond. Your broker faxed to you the following information about two annual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: Features Face value (Par) Coupon rate Yield to maturity Years to maturity Price $5,000 12.5% 9.5% 15 $5,000 5.5% 20 $5,298.76 Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond? 6174.23 Round to the nearest cent.) What is the coupon rate of the AOL coupon bond? (Round to the nearest whole percent.)
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