Kaiser Industries has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and a current price of $1066.46. At this price, the bonds yield 7.5 percent. What is the coupon rate?
Kaiser Industries has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and a current price of $1066.46. At this price, the bonds yield 7.5 percent. What is the coupon rate?
Bonds are fixed-income assets that serve as a representation of investor loans to borrowers (typically corporate or governmental). A bond is analogous to a contract outlining the terms of a loan and the associated payments between a lender and borrower. Corporations, towns, cities, states, and other sovereign governments utilise bonds to finance projects and operations. Bondholders are the issuer's borrowers or creditors. Bond specifications sometimes include the terms for the borrower's variable or fixed interest payments as well as the estimated date by which the loan's principal will be paid back to the bond owner.
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