Question

25.)Google is offering a 10-year coupon bond with face value $15,000. The current price of the bond is $13,990. If the yield to maturity of the bond is 4.9%, what is the coupon rate (in %) of the bond? Round your answer to at least 2 decimal places.

26.)A 4-percent 8-year coupon bond with face value $20,000 is currently selling for $19,300. What is the yield to maturity (in %) of the coupon bond? Round your answer to at least 2 decimal places.

Answer 1

25)

B12 - X fix =B10*B2/B1 в 15,000 10 А 1 Face value (FV) 2 Number of compounding periods per year 3 Number of years to maturity Number of compounding periods till maturity 4 (NPER) 5 Yield to maturity 6 Yield to maturity (RATE) 7 Bond price (PV) 8 Interest payment (PMT) 10 4.9% 4.9% (13,990.00) PMT(RATE,NPER,PV,FV)| 9 10 Coupon payment (PMT) $ 604.83 11 Coupon rate [Coupon payment * 12 Compoundings per year =$FV] 4.03%

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