Question

What is the amount of the annual coupon payment for a bond that has 8 years...

What is the amount of the annual coupon payment for a bond that has 8 years until maturity, sells for $1,150, and has a yield to maturity of 9.37%?

A. 104.97

B. 121.17

C.108.63

D.130.18

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Homework Answers

Answer #1

Given,

Years to maturity (n) = 8 years

Current price = $1150

Yield to maturity (r) = 9.37% or 0.0937

Par value = $1000

Solution :-

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