Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's yield to maturity is 5.0%, what percentage its value is from the present value of its coupon payments? a. 78.5% b. 57.3% O c. 52.4% d. 66.4% O e. 50.7% O f. 75.6% O g. 32.4% h. 35.5%
Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's yield to maturity is 5.0%, what percentage its value is from the present value of its coupon payments? a. 78.5% b. 57.3% O c. 52.4% d. 66.4% O e. 50.7% O f. 75.6% O g. 32.4% h. 35.5%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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