How do I calculate the coupon rate of a bond? and Bond Street Underground Station - Central line

How do I calculate the coupon rate of a bond?

I am only given the years to maturity, bond price, and yield to maturity.


Bond best answer:

Answer by buz
You'd also need the par value of the bond... assuming you have that, you can calculate the coupon yield as follows:

par value - amount paid = total discount
annual discount = total discount / years to maturity

the yield to maturity = (annual coupon interest + annual discount)/amount paid for bond

so if you have everything except the annual coupon interest, you can determine the annual coupon interest

then divide the annual coupon interest by the par value of the bond to get the coupon rate

Bond

Bond Street Underground Station - Central line


Image by ell brown
After visiting the Museum of London, and checking out St Paul's Cathedral, it was time to make our way over to Victoria, to see the amazing show that was Wicked.

We left St Paul's on the Central line for Bond Street. Then got the Jubilee line to Westminster (the Victoria line was closed for engineering works). Then the busy District line to Victoria.

Arriving at Bond Street on the Central line.

Our Central line tube train pulls away, after we got off it.

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