Answer to Question #122454 in Macroeconomics for George

Question #122454

Consider a bond with face value of $1000 due to mature in one years time. Its current price is $1035 the current interest rate is 5.8%. its coupon is?

Expert's answer

"1035=\\frac{c}{1+0.058}+\\frac{1000}{1+0.058}"

c-coupon

с=95.03

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