Question

Use the information given in the following table for an bond, what is the coupon rate...

Use the information given in the following table for an bond, what is the coupon rate of the bond?

Today is February 20, 2020.

Type Issue date Price Coupon rate Maturity date YTM Current yield Rating
Bond August, 2003 $1,035.53 ------     August 20, 2024 10%    --- AA

Assume semi-annual interest payments and a par value of the bond of $1,000.

The coupon rate of the bond is:   

Question 11 options:

12.00%

11.00%

10.00%

7.00%

8.00%

9.00%

6.00%
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Homework Answers

Answer #1

Given,

Par value = $1000

Price = $1035.53

YTM = 10% or 0.10

Months left to maturity = 54 months (from February 20, 2020 to August 20, 2024)

Solution :-

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