Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
The coupon rate on the bonds of $1,000 par value, selling at $962 and with a bond's yield of 5.1% at this price, is 4.91%.
What is the coupon rate?
The coupon rate is the annual payment divided by the face or par value.
The coupon rate represents the annual yield that the investor in a bond receives.
Data and Calculations:
N (# of periods) = 8 years
I/Y (Interest per year or Yield) = 5.1%
PV (Present Value or Price) = $962
FV (Future Value) = $1,000
Results:
Annual PMT = $49.06 ($962 x 5.1%)
Coupon rate = 4.91% ($49.06/$1,000 x 100)
The coupon rate on the bonds of $1,000 par value, selling at $962 and with a bond's yield of 5.1% at this price, is 4.91%.
Learn more about coupon rates at https://brainly.com/question/25596583
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.