Consider a 10-year bond with a face value of $ 1 comma 000 that has a coupon rate of 5.1 %, with semiannual payments. a. What

Question

3 years ago

5

is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond?\

1 answer:

poizon [28] · Answer 1 · 2022-01-19T11:14:20+03:00

3 0

Answer:

Answer is given below.

Explanation:

SOLUTION

a. Calculation of Coupon Payment

Coupon Payment = Face Value X Coupon Rate /2

Coupon Payment = 1000*5.5% /2

Coupon Payment = 55 /2= 27.5

Therefore the Coupon Payment is = 27.51

cash flow diagram is attached.

Consider a 10​-year bond with a face value of $ 1 comma 000 that has a coupon rate of 5.1 %​, with semiannual payments. a. What