Beam Inc. bonds are trading today for $1472.45. The
bond currently has 19 years until maturity and has a yield of maturity of 2.38%.
The bond pays annual coupons and the next coupon is due in 1 year. What is the
coupon rate of the bond?
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let the coupon rate be x,
PV = 1000*x (sum of 1/1.0238^i, i from 1 to 19) +1000/1.0238^19
15142.6x = 832.84
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