What is coupon rate if it pays semi-annual coupon payments

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Reference no: EM132021416

You paid $957,3 for a 5% 5-year bond, which has a face value of $1000 and pays coupons twice each year. What is the yield-to-maturity? Choose the closest answer

A 2%

B 3%

C 4%

D 5%

E 6%

A bond matured in 15 years has a current yield of 8.35%. The face value is $1000 while the selling price is $1197.93. What is its coupon rate if it pays semi-annual coupon payments?

A 4.18%

B 5.00%

C 8.35%

D 10%

E None of the above

Reference no: EM132021416

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