Below is the discounted cash flow schedule of the bond which shows how the current price is arrived at
This can be expressed in the form of an equation as follows:
Now when the coupon is calculated to 32.49 over a par value of 1000 and it being a semi annual coupon, the coupon rate is calculates as follows:
So the coupon rate is 6.5%
Y 5 Transit (Bus) work 0 Saved Happy Valley Corporation has bonds on the market with...
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