ARG Nanotechnology Corporation issued bonds 4 years ago with a 14-year maturity. The issue pays an...

ARG Nanotechnology Corporation issued bonds 4 years ago with a 14-year maturity. The issue pays an annual coupon of $60 per annum. YTM is currently 8.5% p.a. Bond’s face value is $1,000. What is the annual coupon rate?

a.4.25%

b.6%

c.3%

d.8.5%

e.7%

Expert Solution

Annual Coupon Rate = Annual Coupon/Par Value

Annual Coupon Rate = $60/$1000

Annual Coupon Rate = 6% (Option b)

jeff jeffy answered 2 years ago

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