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Bonds

Show work for all 3 questions in a word document.
Show work for all 3 questions in a word document.

A bond has a $1000 face value, a market price of $1,115, and pays interest payments of $90 every year. What is the coupon rate?

A 7 percent bond has a yield to maturity of 6.75 percent, 10 years to maturity, a face value of $1000, and semiannual interest payments. What is the amount of each coupon payment payment?

Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity. If the bond is currently trading for $459, then the yield to maturity on this bond is closest to:
A)7.5%
B)10.4%
C)9.7%
D)8.1%

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The solution explains some questions relating to bond calculations

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