Find the bonds quartely coupon rate

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1. A four-year bond has price P=£10,000 and face value FV=£60,000 and quarterly coupon payments of £2,000. Find the bonds' quartely coupon rate.

2. A one-year risk-free zero coupon bond with face value = 300 sells for P=195. What is the one-year risk free rate?

3. A 12-year level coupon bond with a face value (FV) of £90,000 pays a coupon of £20,000 at the end of each year. The appropriate cost of capital for this bond is 3% per year. What is the present value (PV) of this bond ?

Please show all the workings! Thanks in advance

Reference no: EM133116000

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