In: Finance
Bond Features | |
Maturity (years) = | 5 |
Face Value = | $1,000 |
YTM = | 4.00% |
Dollar Coupon | $70 |
Coupon dates (Annual) |
What is the Coupon Rate on the above bond ?
Group of answer choices
4.00%
6.16%
7.00%
6.18%
6.24%
coupon rate = annual coupon/face value
= 70/1000
= 0.07
= 7.00%
hence choose 3rd option, 7.00%