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19 April, 02:29

A $1,000 face value bond currently has a yield to maturity of 6.03%. The bond matures in thirteen years and pays interest. AB Builders has 15-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?

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  1. 19 April, 05:56
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    N = 15

    FV = 1,000

    PV = 974

    I = 4.03

    Compute PMT

    Put these values in a financial calculator

    PMT = 37.9
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