Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds...

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:

Expert Solution

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%

jeff jeffy answered 2 years ago

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