Question
What is the price of a 3-year bond with a 10% annual coupon rate and face value of $100? The bond is trading at a
What is the price of a 3-year bond with a 10% annual coupon rate and face value of $100? The bond is trading at a yield of 6%. Coupons are paid quarterly. Assume quarterly compounding.
Round your answer to the nearest cent (2 decimal places).
What is the current yield of a 7-year bond with a coupon rate of 7% and face value of $100? Assume the bond is trading at 7% yield, and that coupons are paid semi-annually. Assume semi-annual compounding.
Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
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