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In Conejo (Q1b), I am struggling to work out where the 83.71 is coming from in the answer. I am able to calculate 4.5665R, but I do not know how to calculate the 83.71 in order to calculate the coupon rate which is 3.57%?
Am I missing something obvious, I have been through the question multiple times and I have no idea where to source this information (and it is not explained in the question bank answer)?
Is anyone able to point me in the right direction?
But it directly follows on from the previous line in the answer.
The previous line has 5 terms with R in them, and you have calculated the total of them OK.
There is a 6th item before the equals sign, which is ($100 x (1/1.0362)^5). If you do this on your calculator is comes to 83.71 🙂
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