OK, sorry if this is a retarded question, but i'm just trying to understand bonds..
Anyways I purchased 2 bonds for 130.309 (so $2,606.18 total).
The bond has a par of $2000, coupon rate of 8.800%, and yield to maturity of 5.110%.
The bond comes due in 02-15-2021 (interest paid in Feb,Aug), and if i'm right it looks like 22 interest payments left.
So anyways I was trying to figure out how much each interest payment will be. Do I do $2000 x .08800% to get the yearly interest, then divide it by 2 and then times that amount by 22 to find the amount of total interest I will be paid - or is that wrong and I would be computing using other variables.
Thanks!
Anyways I purchased 2 bonds for 130.309 (so $2,606.18 total).
The bond has a par of $2000, coupon rate of 8.800%, and yield to maturity of 5.110%.
The bond comes due in 02-15-2021 (interest paid in Feb,Aug), and if i'm right it looks like 22 interest payments left.
So anyways I was trying to figure out how much each interest payment will be. Do I do $2000 x .08800% to get the yearly interest, then divide it by 2 and then times that amount by 22 to find the amount of total interest I will be paid - or is that wrong and I would be computing using other variables.
Thanks!