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4- You are purchasing a 20-year, semi-annual bond with a current market price of $973.64. If the yield to maturity is 8.68 pe

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Answer #1

Coupon payment can be calculated by using the following excel formula:
=PMT(rate,nper,pv,fv)
=PMT(8.68%/2,20*2,-973.64,1000)
= $42

Semi annual coupon payment = $42
Annual coupon payment = $42 * 2 = $84.

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