1. Assume that par value of the bond is $1,000. What was the last price of the bond in $$$ (listed in "Last" trade price)? ($1000/$100)* 103.531= $1,035.31
2. Assume that par value of the bond is $1,000. Calculate annual coupon interest payments. Annual coupon interest payments = Coupon rate* par value
.055*$1.000= $55
3. Assume that par value of the bond is $1,000. Calculate current yield of the bond. Current yield= (annual interest payment/ market price of the bond)
55/103.531= 5.31%
4. Assume that par value of the bond is $1,000. Assume annual coupon payments. Calculate YTM of the bond using the last price (listed in Last Trade Price). (Round the number of years to the whole number). You should use Excel or financial calculator. Show your work.
=RATE (30,55,-1035.31,1000,0)
YTM: 5.18%