Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasi

Question

Suppose you have just bought a 20-year, 6% semiannual coupon bond.  Your purchasing price of the bond implies that the current YTM is 5%.  Assuming you keep this bond till its maturity, the number of coupon payments during the 20 year period is ; the dollar amount of each coupon payment is $ (no decimal places without the $ sign); the dollar amount that you will receive at maturity is $ (no decimal places, without the $ sign). Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 5%. Assuming you keep this bond till its maturity, the number of coupon payments during the 20 year period is the dollar amount of each coupon payment is $

Explanation / Answer

the number of coupon payments during the 20 year period is = 20*2 = 40

dollar amount of each coupon payment is = 6%*1000/2 = $30

the dollar amount that you will receive at maturity is = 1000+30 = 1030

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