so: Coupon rate = $83.92 / $1,000 = .0839 or 8.39% 6. Here we are finding the YTM of an annual coupon bond. The fact that the bond is denominated in yen is irrelevant. The bond price equation is: P = ¥92,000 = ¥2,800(PVIFAR%,21) + ¥100,000(PVIFR%,21) Since we cannot solve the equation directly for R, using a spreadsheet, a financial calculator, or trial and error, we find: R = 3.34% Since the coupon payments are annual, this is the yield to maturity. 14. Here…
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