Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a current price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Is there a way to set this up in Excel? Please show your work- I'm trying to understand the process. Thank you.
Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a current price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Is there a way to set this up in Excel? Please show your work- I'm trying to understand the process. Thank you.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a current price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate?
Is there a way to set this up in Excel? Please show your work- I'm trying to understand the process. Thank you.
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When I do the : Coupon x (1-1.075^-14)/(0.075) +1000/(1.075)^14, I end up getting 371.80262428233 as the answer. What am I doing wrong?
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