Homework question Help Needed

Business & Finance
Tutor: None Selected Time limit: 1 Day

A 9 year bond pays interest of $27.10 semiannually, has a face value of $1,000, and is selling for $825.90. What are its annual coupon rate and yield to maturity? (Round to two decimal places)

 

Jul 10th, 2015

Thank you for the opportunity to help you with your question!

825=1000*27.10v

825=270v

825/270=270/270

annual corpon =3

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 10th, 2015

Whats the yield to maturity?

Jul 10th, 2015

Is that annual coupon rate correct because I am coming up with something different?

Jul 10th, 2015

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