DELL has bonds on the market with 11.5 years to maturity, a YTM of 7.6 percent, and a current price of $1,060. The bonds make semiannual payments. What must the coupon rate be on these bonds?
Added by Kamran A.
Step 1
6%, we can use the formula: $1,060 = A * [1 - (1 + 0.076/2)^(-2*11.5)] / (0.076/2) Solving for A, we get A = $41.96 Show more…
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