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  3. you bought a $1000 corporate bond for $910 three y

You bought a $1000 corporate bond for $910 three years ago. It is paying $25...

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Accounting

You bought a $1000 corporate bond for $910 three years ago. It is paying $25 in interest at the end of every 6 months, and it matures in 6 more years.

(a) Compute its coupon rate.

(b) Compute its current value, assuming the market interest rate for such investments is 4% per year, compounded semiannually.

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