Current price of samsung bond

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A Samsung bond has $1000 face value and matures in 3 years. The coupon rate is 11% with semi-annual coupon payment. The stated annual required rate of return is 12% with semi-annual compounding.

(a) What should be the current price of this Samsung bond?

(b) Suppose Samsung decides to issue another bond with a face value of $1000 and it matures in 1 year. The coupon rate is 10% with semi-annual coupon payment. Samsung is able to sell the bond at $950. What is the yield to maturity for this bond?

Reference no: EM131693782

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