Amount of the coupon interest payment


Problem: Offering the US government's 9.25% 2016 Treasury Bond for "129.38."

Q1. What is the amount of the coupon interest payment you would receive each year if you bought the bond? (Assume annual payments)

Q2. How many payments would you receive if you bought the bond and held it to maturity? (In other words, how many years does the bond have to go before it matures?)

Q3. What is the bond's Yield to Maturity, or YTM, assuming you purchased it for the current offering price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Amount of the coupon interest payment
Reference No:- TGS02036986

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)