Acoupon bond with a face value of $1200 that pays an annual coupon of $100 has a coupon rate equal to nothing%. (round your response to the nearest whole number) what is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $1010, pays an annual coupon of $70, and whose price today is $1019.50?
a. 6%
b. 4%
c. 5%
d. 8%
e. 7%
if the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be
above
equal
below
its face value.

5.93% rounded to 6%, below

Step-by-step explanation:

First step is understanding that you need to use a financial calculator. Using, for example, a BA II Plus Texas Instrument, press the number then press CPT at the top left corner of the calculator then either press:

N=maturity,

I/Y=yield to maturity,

PV=present value/price today

PMT=annual coupon

FV=future value/par value

Depending on the requirements of the question. For this question:

The "price today" is the present value of the bond which is $1019.50=PV

The par value is the amount paid back at the end of the period. This is the future value of the bond which is put in the calculator as "-$1010"=FV because it is a payment.

The annual coupon is the amount that is paid each year. It is put as "-$70"=PMT in the financial calculator.

The maturity date is the year the bond expires so if it says "one year from today", this is 1=N

Then, after following the sequence of inputs into the calculator, the missing number is the yield to maturity will be calculated by pressing CPT then I/Y. The answer should come out as 5.93%. This is the return that the company that received the bond expects to make during the period.

If the Yield to maturity on a bond exceeds its coupon rate, the price of the bond will be below its face value.

plants store their excess carbohydrate in the form of starch so that it could be used as energy source later on. the excess carbohydrate is converted into starch in the plastid i.e. chloroplast & this process occurs in the presence of sunlight. it is an insoluble polymer of glucose which gets stored in cell organelles named as amyloplasts. in some plants, starch is also stored in roots and embryos.

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