Missing information on a bond. Your broker faxed to you the folliowing informati

Question

Missing information on a bond. Your broker faxed to you the folliowing information about two semiannual coupon bonds that yu are considering as a potential investment . Unfortunately your fax machine is blurring some of the items and all you can read from the fax on the two diffent bonds is the following

                                           IBM  coupon bond                            AOL coupon bond

Face value                           $1,000                                                      $1,000

coupon rate                          9.5%

Yield to maturity                    7.5%                                                          8.5%

Years to maturity                    10                                                               20

Price                                                                                                   689.15

I am trying to use Microsoft Excell to answer this question, but am having problems with the setup

Explanation / Answer

IBM bond price ( used calculators available online ) = 1138.96

AOL bond coupon rate = 5.242%

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