Suppose a five-year $1,000 bond with annual coupons has a price of $896.35 and a yield to maturity of 5.9%. What is the bond's coupon rate in percent? (Round to three decimal places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
icon
Related questions
Question

What is the bond's coupon rate in percent on these financial accounting question?

Suppose a five-year $1,000 bond with annual coupons has a price of
$896.35 and a yield to maturity of 5.9%. What is the bond's coupon
rate in percent? (Round to three decimal places.)
Transcribed Image Text:Suppose a five-year $1,000 bond with annual coupons has a price of $896.35 and a yield to maturity of 5.9%. What is the bond's coupon rate in percent? (Round to three decimal places.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning