Finance - Calculating Coupon Rate

Apr 20th, 2015
Business & Finance
Price: $50 USD

Question description

You purchased a newly issued on year, semiannual coupon risk free bond with a face value of $1,000 yesterday for $950.00. However, you forgot what the coupon rate of the bond is. Use the information provided in the table below to determine what the coupon rate on your bond is:

Price of Zero Coupon Bond     Time to Maturity of Zero Coupon Bond

$970                                               1 month

$950                                               3 months

$945                                               6 months

$930                                              9 months

$920                                              12 months

$900                                              15 months

$881                                              18 months

Show your work:

Tutor Answer

(Top Tutor) Daniel C.
School: New York University

Studypool has helped 1,244,100 students

Review from our student for this Answer

Apr 21st, 2015
"Totally impressed with results!! :-)"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors