Suppose you have just bought a 20year 6 semiannual coupon bo

Suppose you have just bought a 20-year, 6% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 5%. Assuming you keep this bond till its maturity, the number of coupon payments during the 20 year period is ________; the dollar amount of each coupon payment is $ ________ (no decimal places without the $ sign); the dollar amount that you will receive at maturity is $ __________ (no decimal places, without the $ sign).

Solution

number of coupon payments = 20*2 = 40

dollar amount of coupon payment = 6%/2 of 1000 = 30

The dollar amount at maturity = 1000