Please post all steps to this. I have tried several times and followed all of my

Question

Please post all steps to this. I have tried several times and followed all of my professors steps, only plugging in my numbers and cannot get it right. Not sure where I am going wrong, but would like to figure it out.

and what is the coupon rate of the AOL Coupon Bond?

Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: IBM Coupon BondAOL Coupon Bond Features Face value (Par) Coupon rate Yield to maturity Years to maturity Price $1,000 75% 9.5% 30 $5,000 75% 20 $3,706.96 Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond? (Round to the nearest cent.)

Explanation / Answer

FV = 1,000

COupon Rate = 7.5%

Coupon Payment = 75

YTM = 9.5%

N = 30

Using Financial Calculator:

PV = 803.31

Part B

FV = 5,000

YTM = 7.5%

N = 20

PV = 3,706.96

Using Financial Calculator:

Coupon Payment = 248.16

Coupon Rate = 248.16/ 5000

Coupon Rate = 4.96%

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