Homework Answers
Face value=$1000
Present value=$1091.90
Time period=15 years
Yield to maturity=8.4%
We need to first calculate the payment and then the coupon
rate.
So, coupon payment=$95.00
Now, coupon payment=(Coupon rate)*(Face value)
=>95.00 =(Coupon rate)*(1000)
=>Coupon rate=95/1000=0.095 or 9.50%
Answer: Coupon rate=9.5%
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