Question
Missing information on a bond. Your broker faxed to you the following information about two annual coupon LOADING... bonds that you are considering as a
Missing information on a
bond.
Your broker faxed to you the following information about two
annual
coupon
LOADING...
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:
LOADING...
. Fill in the missing data from the information that the broker sent.
What is the price of the IBM coupon bond?
$nothing
(Round to the nearest cent.)
What is the coupon rate of the AOL coupon bond?
nothing%
(Round to the nearest whole percent.)
Features | IBM Coupon Bond | AOL Coupon Bond | ||
---|---|---|---|---|
Face value (Par) | $5000 | $1000 | ||
Coupon rate | 5.5% | ? | ||
Yield to maturity |
| 9.5% | ||
Years to maturity | 25 | 15 | ||
Price | ? | $804.30 |
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