Bond Features Maturity (years) = 5 Face Value = $1,000 YTM = 4.00% Dollar Coupon $70...

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%

Solutions

Expert Solution

coupon rate = annual coupon/face value

= 70/1000

= 0.07

= 7.00%

hence choose 3rd option, 7.00%

jeff jeffy answered 2 years ago

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