Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasi
ID: 2705143 • Letter: S
Question
Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 5%. Assuming you keep this bond till its maturity, the number of coupon payments during the 20 year period is ; the dollar amount of each coupon payment is $ (no decimal places without the $ sign); the dollar amount that you will receive at maturity is $ (no decimal places, without the $ sign). Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 5%. Assuming you keep this bond till its maturity, the number of coupon payments during the 20 year period is the dollar amount of each coupon payment is $Explanation / Answer
the number of coupon payments during the 20 year period is = 20*2 = 40
dollar amount of each coupon payment is = 6%*1000/2 = $30
the dollar amount that you will receive at maturity is = 1000+30 = 1030