What is the coupon rate and current market price

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1. A bond has a face value of $1,000, a market price of $1,112, and pays $81 in interest every six months. What is the coupon rate? Express your answer as a decimal, rounded to four places.

2. A $1,000 par value bond matures in 7 years, pays interest semiannually, and has a yield-to-maturity of 5.4 percent. Each semiannual coupon payment is $60. What is the current market price? Round your answer to the nearest cent.

3. A $1,000 par value bond matures in 4 years, pays interest semi-annually, has a coupon rate of 5.3 and has a yield-to-maturity of 4.2 percent. What is the current market price? Round your answer to the nearest cent.

Reference no: EM132006868

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