Consider a 15-year bond with a face value of $ 1,000 that has a coupon rate...
Consider a 15-year bond with a face value of $ 1,000 that has a coupon rate of 5.4 %,
with semiannual payments.
a. What is the coupon payment for this bond?
b. Draw the cash flows for the bond on a timeline
Homework Answers
a. Coupon payment = (FV * Coupon rate) / (No. of payments per year)
Coupon payment = (1,000 * 0.054) / 2
Coupon payment = $27
b.
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