Even though most corporate bonds in the United States make coupon payments semianually, bonds issued elsewhere often have annual coupon payments. Suppose a German compay issues a bond with a par value of $1,000, 10 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 7.1 percent, what is the current price of the bond?

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Even though most corporate bonds in the United States make coupon payments semianually, bonds issued elsewhere often have annual coupon payments. Suppose a German compay issues a bond with a par value of $1,000, 10 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 7.1 percent, what is the current price of the bond?

 
 

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