Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate

Sagot :

Answer:

6.95

Explanation:

Coupon rate = $69.50/$1,000 = .0695, or 6.95 percent

abiolataiwo2015

Based on the information given the Coupon rate is 6.95%.

Coupon rate

Using this formula

Coupon rate=Interest payment/Face value

Where:

Interest payment=$69.50

Face value=$1,000

Let plug in the formula

Coupon rate=$69.50/$1,000

Coupon rate= .0695×100

Coupon rate=6.95%

Inconclusion  the Coupon rate is 6.95%.

Learn more about coupon rate here:https://brainly.com/question/25720319

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.