2 years ago

What type of association is there ??

Mathematics

1 answer:

lora16 [44]2 years ago

8 0

hi i just need some points rq tyStep-by-step explanation:

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Nolan has a bond with a 6.1% yield, a bid price of $475, and a face value of $500. What is the original coupon rate of this Bond

Vladimir79 [104]

Answer:

5.8%

Step-by-step explanation:

Current yield = 6.1%

Face value of bond = $500

Market price of bond = $475

Let the original coupon rate be CR

$Current\hspace{2}yield = \frac{Coupon\hspace{2}rate* Bond\hspace{2}face\hspace{2}value}{Market\hspace{2}price}*100$

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Cancel out the 475's from the top and bottom of the right side

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Flip the sides

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Divide both sides by 5000

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Cancel out 50000 from the top and bottom of the left side

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