7.12% is the bond's coupon rate.
The Coupon amount = pmt (rate, nper, -pv, fv) and Semi-annually equals $35.59, where,
pmt stands for "semi-annual coupon payment"
rate= Semi-annual yield to maturity: 6.72/2, or 0.0336.
nper= 20*2 = 40 for the semi-annual number of periods.
pv= Price at the moment is $1,043.47.
fv= Face value is equal to $1000.
Annual coupon payment, therefore, equals $ 35.59*2 = $ 71.18.
Coupon rate calculation:
Annual coupon payment / Face Value is the coupon rate = $ 71.18/ $ 1,000 = 7.12 percent.
Therefore, the coupon rate is 7.12%.
By dividing the total annual coupon payments made by the security by the bond's par value, one can determine a bond's coupon rate. Ordinarily, the "coupon rate," which is determined by summing the total annual coupon payments and dividing the result by the bond's face value, is used to characterize coupons.
To learn more about Coupon rates visit: https://brainly.com/question/13991270
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