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A 10 year semiannual is selling at par and has a yield to maturity of 8.84...

A 10 year semiannual is selling at par and has a yield to maturity of 8.84 percent. What is the amount of each coupon payment if the face value of the bonds is $1,000? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST CENT (2 Decimals). LIST THE NUMBER AS A POSITIVE NUMBER

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Answer #1

When bond is selling at par, coupon rate will be equal to YTM

Therefore, Coupon rate = 8.84%

Each coupon payment = (Coupon rate * face value) / 2

Each coupon payment = (8.84% * 1000) / 2

Each coupon payment = 44.20

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