Question

a 15 year annual coupon bond is priced at 984.56 the bond has a face value of 1000 and yields to maturity at 6.5% what is the coupon rate

2.

the 1000 face value bonds if galaxies have a coupon rate of 5.5% and pay nterest semiannually currently the bonds are quoted 98.02 and ,store on 12 years what is the yield to maturity

Answer 1

1

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =15

984.56 =∑ [(Coupon rate*1000/100)/(1 + 6.5/100)^k]     +   1000/(1 + 6.5/100)^15

k=1

Coupon rate% = 6.34

Please ask remaining parts seperately, questions are unrelated