What is the annual coupon rate of a 10-year corporate bond given that its current price...

Question

Question

What is the annual coupon rate of a 10-year corporate bond given that its current price is $1,100, par=1,000, YTM=12%?

Question 5 options:

business finance

Answer 1

Answer #1

face Value = 1000 M=10 year Present value = 1100 y fm = 120% Using financial calculator, FV=1000 N = 10 pv=- 1100 1/4 = 12 %.

Answer 2

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