Question

In: Finance

A. A 10-year $1,000 face value coupon bond is currently sold at $1,033. Assume the yield...

A.

A 10-year $1,000 face value coupon bond is currently sold at $1,033. Assume the yield to maturity of this coupon bond is 7.26% and the coupon bond pays the interest payment annually.

What is the annual coupon rate of the bond?

Please round your answer to the fourth decimal. (e.g. 0.1234)

B.

A $10,000 face value discount bond maturing in one year is currently selling for $9,094.41.

What is the yield to maturity to this discount bond?

Please round your answer to the fourth decimal. (e.g. 0.1234)

Solutions

Expert Solution

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