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You want to buy a Disney bond with two years until maturity and a coupon rate of 9.50% per year, paid semiannually. FED reports that the market interest rate for similar bonds is only 3.8% per half-year. a. Find the bond's price today and 6 months from now after the next coupon is paid. (Do not round intermediate calculations.

Round your answers to 2 decimal places.)

-Current price $

-Price after 6 months $

- What is the total rate of return on the bond?

(Do not round intermediate calculations. Round your answer to 2 decimal places.) Total rate of return % per six months

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92828542

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