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Answer 19The coupon rate is 8.5%, and the duration to maturity is 20 years. In the situation where new bonds are to be issued, the yield can be calculated to be $1062 using the formula:P=current price+par value2This will then be equated to $42.5 multiplied by the present value annuity factor, with an unknown coupon rate and 40 periods, added to par value of the bond multiplied by the present value factor for 40 periods with an unknown rate.Using a spreadsheet and setting the equati...