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Homework answers / question archive / What is the amount of the annual coupon payment for a bond that has six years until maturity, sells for $1,050, and has a yield to maturity of 9

What is the amount of the annual coupon payment for a bond that has six years until maturity, sells for $1,050, and has a yield to maturity of 9

Finance

What is the amount of the annual coupon payment for a bond that has six years until maturity, sells for $1,050, and has a yield to maturity of 9.37%?

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We can calculate the annual coupon payment by using the following formula in excel:-

=pmt(rate,nper,-pv,fv)

Here,

Pmt = Annual coupon payment

Rate = 9.37%

Nper = 6 periods

PV = $1,050

FV = $1,000

Substituting the values in formula:

= pmt(9.37%,6,-1050,1000)

= $104.97

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