Answers to Text Discussion Questions

The coupon payment is the coupon rate times par value. Using this relationship, we get: Coupon rate = $70.95 / $1,000 . Coupon rate = .0710 or 7.10%. 6. To find the price of this bond, we need to realize that the maturity of the bond is 14 years. The bond was issued one year ago, with 15 years to maturity, so there are 14 years left on the bond. ................
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