A Ford Motor Co. coupon bond has a coupon rate of 6.556.55%, and pays annual coupons....

Question

Question

A Ford Motor Co. coupon bond has a coupon rate of

6.556.55%,

and pays annual coupons. The next coupon is due tomorrow and the bond matures

4040

years from tomorrow. The yield on the bond issue is

6.16.1%.

At what price should this bond trade today, assuming a face value of

$1 comma 0001,000?

The price of the bond today should be

$

Answer 1

Answer #1

6 1,000 6.55% 7 8 65.5 40 А B A Par value (FV) B Coupon rate C Number of compounding periods per year D = AxB/C Interest per

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Answer 2

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A Ford Motor Co. coupon bond has a coupon rate of 6.556.55​%, and pays annual coupons....