3. Current price of the bond is, 1,152.66 euros (Cant find a euro symbol on my computer).
To find my answer I used 2 formulas, first I used the present value formula to find the
present value of the coupons, then I used the present value formula again to find the
present value of the face amount. Coupon pv= 804.94 euros + the face value pv which
equals = 347.22 euros, which got me a grand total of 1,152.66 euros.
4. the ytm of the bond is = 4.13%
I used the ytm formula, 100,000 yen is the face value, the annual coupon rate is 3.4%, the
years to maturity is 16 years, payments per year is 1, and the current bond price is
91,530, which can be solved by doing 100,000 x 91.53%. After all that is inputted into the
formula the final ytm is 4.13%.
5. the coupon rate on the bonds is= 5.14%
I used the formula on how to calculate coupon rates, the formula is simple, take the
