Question:your firm has outstanding bonds with semi annual coupon payments
and a face value of $1000....
Question
your firm has outstanding bonds with semi annual coupon payments
and a face value of $1000....
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?