Question #122454
Consider a bond with face value of $1000 due to mature in one years time. Its current price is $1035 the current interest rate is 5.8%. its coupon is?
1
Expert's answer
2020-06-16T14:05:28-0400

1035=c1+0.058+10001+0.0581035=\frac{c}{1+0.058}+\frac{1000}{1+0.058}

c-coupon

с=95.03


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