Seana
Jun 6, 2006, 11:09 AM
:eek: I have to find the coupon rate on a bond but every formula I find requires the coupon rate to already be configured. How do I work backwards to get what I need?
Example problem - Samantha's bonds sell for $1065.15. The bond life is 9 years and the yield to maturity is 7 percent. What must be the coupon rate on the bonds?
To look at it - it seems so simple. I don't understand why am having such trouble. Can anyone please help? Thanks.
Example problem - Samantha's bonds sell for $1065.15. The bond life is 9 years and the yield to maturity is 7 percent. What must be the coupon rate on the bonds?
To look at it - it seems so simple. I don't understand why am having such trouble. Can anyone please help? Thanks.