Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often ha
Posted: Wed Jul 06, 2022 6:42 pm
Even though most corporate bonds in the United States makecoupon payments semiannually, bonds issued elsewhere often haveannual coupon payments. Suppose a German company issues a bond witha par value of €1,000, 10 years to maturity, and a coupon rate of7.2 percent paid annually. If the YTM is 9.2 percent, what is thecurrent bond price in euros?