Computation of coupon interest rate and bond''s yield

Reference no: EM1314450

Computation of coupon interest rate and bond's yield

Assume that the following quote for the Financial Management Corporation's $1,000-par-value bond was found in the Wednesday, November 8, issue of the Wall Street Journal.

Financial Management (FM) 5.700 May 15, 2013 97.708 6.034 129 10 47,807

Given this information, answer the following questions:

(a) On what day did the trading activity occur?

(b) What was the last price at which the bond traded on November 7?

(d) What is the bond's coupon interest rate?

(e) What is the bond's yield? Explain what this value represents.

Reference no: EM1314450

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