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your firm has outstanding bonds with semi annual coupon payments and a face value of $1000. the price today is $1075, the yield yo maturity
your firm has outstanding bonds with semi annual coupon payments and a face value of $1000. the price today is $1075, the yield yo maturity is 8% and the bonds mature in 15 years.
A) compute the annual coupon rate
B) compute the capital gains yield
C) is the bond a premium or discount? why?
D) if the bond price goes up, what will happen to the coupon rate?
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
