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QUESTION 3 (6 marks; 10 minutes) A semi-annual bond of R3 000 is maturing in 15 years. Its coupon rate is 10% per annum. Find
QUESTION 3 (6 marks; 10 minutes) A semi-annual bond of R3 000 is maturing in 15 years. Its coupon rate is 10% per annum. Find the purchase price of the bond if the current yield-to-maturity on the bond is 12%. (4) 2. Explain the relationship between the coupon rate and the yield-to-maturity of bonds in relation to the price of the bond. (2)
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