jennarosebrand9153 jennarosebrand9153
  • 10-11-2020
  • Business
contestada

Suppose a bond has a $1,000 face value, a market price of $1,045.00, and pays a coupon of $80 annually. What is the bond's coupon rate

Respuesta :

ogorwyne
ogorwyne ogorwyne
  • 11-11-2020

Answer:

8%

Explanation:

The Coupon rate can be defined as the rate of interest that is paid by issuers of bond on the face value of the bond. This is the periodic interest rate that is paid by bond issuers to their purchasers.

For this question

The face value of the bond is 1000 dollars

The coupon is 80 dollars

Such that We have

80/1000

= 0.08

This is 8% coupon rate.

Answer Link

Otras preguntas

What was one of the causes of the increasing European tension prior to World War I?
#4 geometry help please
What is a high mass star that has collapsed from gravity
On a recent trip, Juan started at an elevation of 1200 feet above sea level. He descended into a valley 20.4 feet below sea level. Which of the following shows
Find the surface area of this triangular prism. Be sure to include the correct unit in your answer.
In the usa, the two sources of indoor air pollution causing the most deaths are cigarette smoke and _____. a. pesticides b. radon c. ozone d. radiation from ele
Which of the following statements is true?        A. Waste isn't a problem in reaching group goals.   B. Sacrifice isn't necessary to achieve group goals.
ANSWER PLZ QUICK AND FAST
Why are red and white blood cells important to have?
Approximately _____ of all traffic deaths occur within 25 miles of the home.