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Show Your Work Problem 1: A $1,000 par value bond has 3 years until maturity, 8 percent annual coupon rate, and coupon payments are made
Show Your Work Problem 1: A $1,000 par value bond has 3 years until maturity, 8 percent annual coupon rate, and coupon payments are made semi-annually. The annual yield to maturity is 9.5 percent. a. What is the periodic coupon payment each period for this bond? b. Calculate the bond's price and show the keys that you use in your calculator c. Draw the time line showing all the cash flows (dollar amounts) including price, coupon payments and the face value for the bond and then use arrows showing the direction for discounting them to equal the current price
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