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A 15-year, semiannual coupon bond sells for $985.72. The bond has a par value of $1,000...

A 15-year, semiannual coupon bond sells for $985.72. The bond has a par value of $1,000 and a yield to maturity of 6.57 percent. What is the bond's coupon rate?

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Answer #1
                  K = Nx2
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                   k=1
                  K =15x2
985.72 =∑ [(Coupon rate*1000/200)/(1 + 6.57/200)^k]     +   1000/(1 + 6.57/200)^15x2
                   k=1
Coupon rate% = 6.42
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