What is the current price for that same bond if the coupon


1.Present value of an annuity (or bond, in this case, with semiannual coupon payments):

Suppose Ford Motor Company issued corporate debt (rated S&P BBB) on this basis:

Issue date: 12-08-2006

Maturity date: 12-08-2026

Coupon rate: 4.346 pct.

Price at issue = 100.

What is the yield to maturity (annualized) if the market price for this bond today is 102.3?

What is the current price for that same bond if the coupon rate were 7.5 percent and the yield to maturity were 4.68 percent?

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Financial Management: What is the current price for that same bond if the coupon
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