In: Finance
Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds of similar risk are 11%. The bond has a face value of $1,000. Based not this information, the coupon rate of the bond is:
Here price of bond is equal to face value
when coupon rate is equal to yield price of the bond will be equal to face value
so here given yield is 11%
so coupon rate will be also 11%