Question

What are the annual coupon payments on a $1,000 face value bond with a current yield...

What are the annual coupon payments on a $1,000 face value bond with a current yield of 10.6% and a price of $964.75?

Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.

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Answer #1

Current yield=Annual coupon/Current price

Annual coupon=(964.75*10.6%)

which is equal to

=$102.26(Approx).

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