Yields on bonds of similar risk

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Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds of similar risk are 9.1%. The bond has a face value of $1,000. Based on this? information, the coupon rate of the bond? is:

A. The coupon rate of the bond is 10.3%

B. The coupon rate of the bond is 9.1%.

C. The coupon rate of the bond is 9.2%

D. The coupon rate of the bond is 8.5%

E. We need the maturity of the bond to solve this problem.

A Ford Motor Co. coupon bond has a coupon rate of 6.95?%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from tomorrow. The yield on the bond issue is 6.45?%. At what price should this bond trade? today, assuming a face value of ?$1,000??

The price of the bond today should be ?$__________ ?(Round to the nearest? cent.)

Reference no: EM132816376

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