What is the coupon rate on the bond

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1. A 6 year, 11.7% coupon bond is callable at 106% of par and does not have call protection. The price of the bond today is $1,025. You expect rates to fall to 6% at the end of the year. What is your expected one-year rate of return if you buy the bond today? Answer to 4 decimal places, for example 0.1234.

2. A bond sells today for $1010. The bond has a YTM of 6.55% and matures in 12 years. What is the coupon rate on the bond? Answer to 4 decimal places, for example 0.1234.

Reference no: EM131851671

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