Refer to the bond data above and answer the following questions with respect to that bond. When answering the questions, you may make the following assumptions:
A) Assume Semi-annual compounding and coupon payments
B) Assume a face or par value is equal to $1000

Respuesta :

Answer:

1 What is the coupon rate on the bond 7.375%

2 When dose the bond matures (Years) 07/15/2033 (in year 2033)

3 What is the price of the bond in $ units =1000*104.653/100 = 1046.53

4 Calculate current yield using available information =(1000*0.07375)/1046.53*100 = 7.04709 %

Explanation: