a bond has a $1,000 face value, a market price of $1,115 and pays interest payments...

Question

Question

a bond has a $1,000 face value, a market price of $1,115 and pays interest payments of $90 every year. What is the coupon rate?

business finance

Answer 1

Answer #1

Coupon rate is equal to=Annual interest/Face value

=(90/1000)

which is equal to

=9%

Answer 2

Similar Homework Help Questions

A bond has a $1,000 face value, a market price of $989, and pays interest payments...

A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate? Multiple Choice 6.76 percent 700 percent 703 percent 6.95 percent 8.14 percent
bond X and bond Y. Bond X has a face value of $1,000 and 10 years...

bond X and bond Y. Bond X has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond Y was issued 5 years ago when interest rates were much higher. Bond Y has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a 15-year, so today its...
A 9-year bond pays interest of $ 28.60 semiannually, has a face value of $1,000, and...

A 9-year bond pays interest of $ 28.60 semiannually, has a face value of $1,000, and is selling for $765.73. What are its annual coupon rate and yield to maturity? The annual coupon rate is __%. (Round to two decimal places).

Question 4 1 pts Suppose a bond has a $1,000 face value, a market price of $1,045.00, and pays a coupon of $80 annu...

Question 4 1 pts Suppose a bond has a $1,000 face value, a market price of $1,045.00, and pays a coupon of $80 annually. What is the bond's coupon rate? 4.00% 7.66% 4.31% 8.00%
A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of...

A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50 each and matures in six years. What is the coupon rate?
What is the price of a 4-year, 8.2% coupon rate, $1,000 face value bond that pays...

What is the price of a 4-year, 8.2% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 12.3%? The price of the bond is $ . (Round to the nearest cent.)

what is the price of a 4-year, 7.6% coupon rate, $1,000 face value bond that pays...

what is the price of a 4-year, 7.6% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 12%? The price of the bond is. (Round to the nearest cent.)
What is the price of a 6-year, 7.7% coupon rate, $1,000 face value bond that pays...

What is the price of a 6-year, 7.7% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.8%? The price of the bond is $___ (Round to the nearest cent.)
What is the price of a 4-year, 7.8% coupon rate, $1,000 face value bond that pays...

What is the price of a 4-year, 7.8% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.7%?

A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a...

A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a market price of $1,032.19. Assume that the next coupon payment is exactly six months away. a) What is the yield-to-maturity of the bond? b) What is the effective annual rate implied by this price?