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buffy113
Nov 14, 2007, 11:53 AM
Okay, I just don't understand how to figure out coupon rates...
For example:

If a company issued $100,000 face value 5 year annual bonds on January 1 and the coupon rate was 8%, but then the market rate is 7% on the date the bonds are sold...? How would I determine the selling price of the bonds and how do coupons figure into the amortization schedule? I am so lost! HELP!
Thanks!