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Question 2 One issue of bonds of Ford Motor company has the following characteristics: -Time to maturity: 5 years -semi-annual coupon payment: $23.50 -price: $940

Question 2 One issue of bonds of Ford Motor company has the following characteristics:

-Time to maturity: 5 years -semi-annual coupon payment: $23.50 -price: $940

Using this information:

1) What is the coupon rate?

2) What is the current yield?

3) Is the YTM on the bond greater than or less than the coupon rate?

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