Business Finance Homework Help
Business Finance Homework Help. Finance – Calculating Coupon Rate
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
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