A bond has a par value of $1000 and currently sells for $987. The bond\'s coupon

Question

A bond has a par value of $1000 and currently sells for $987. The bond's coupon rate is 7.9% and coupon payments are made semiannually. What is the dollar amount of each semiannual coupon payment? Round to the nearest dollar.

A bond has a face value of $1,000, a market price of $1,112, and pays $77 in interest every six months. What is the coupon rate? Express your answer as a decimal, rounded to four places.

A $1,000 par value bond matures in 7 years, pays interest semiannually, and has a yield-to-maturity of 5.8 percent. Each semiannual coupon payment is $60. What is the current market price? Round your answer to the nearest cent.

Explanation / Answer

12)Coupon dollar amount for each semi annual payment=1000*7.9%/2

=$39.5

22)Coupon rate=77*2/1000

=15.4%

32)Current price=60PVIFA(2.9%,14)+1000PVIF(2.9%,14)

=682.41+670.17

=$1352.58

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