A coupon bond is selling for 105.87% of face value. It matures in 5?

Question

So, I have PV=-$1058.70
FV=$1000
Maturity=5 years
YTM=5.8%
P/Y= for i) N=5
P/Y= for ii) N=10

I think I need to figure out the coupon rate, since that will allow me to figure out the coupon payments. Once I have the coupon rate (i.e. 7% or whatever), I just take 7% of $1000 and my payments are $70 per year. But I don't know how to get that coupon rate.

I thought to go:

(PV-FV)/YTM

Answer 1

The bond pays semiannually, so your maturity should be 10 and your ytm will be 2.9%

I would set it up as follows:

PV=-105.87
FV=100
N = 10
I/Y = 2.9%

If you're using a financial calculator, just solve for PMT and then double the answer. I get 7.16%

If you only use 5 years, like an annual payment, the answer I come up with is 7.19%