Question

Par value Coupon Rate Years to Maturity Yield to Maturity Price Frequency 1000 - 15 6%...

Par value Coupon Rate Years to Maturity Yield to Maturity Price Frequency
1000 - 15 6% 1197.51 Monthly

Coupon rates. What are the coupon rates for the following​ bonds, ​Hint: Make sure to round all intermediate calculations to at least six decimal places.

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Answer #1

n = 15 * 12 = 180

r = 6%/12 = 0.005

Annual coupon = 6.6667016215 * 12 = 80.000419458

Coupon rate = Annual coupon/Face value

Coupon rate = 80.000419458/1,000

Coupon rate = 0.08000041946

Coupon rate = 8.000041946%

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