Bond coupon rate
Not what you're looking for?
You have paid $1,063 for a bond with 9 years remaining to maturity. Interest on the bond is paid semiannually. If current rate of return for similar investments is a nominal 8%, what is this bond's coupon rate? Round answer to two decimal places.
Please provide formulas (not excel)
Purchase this Solution
Solution Summary
The solution explains how to determine the bond coupon rate.
Solution Preview
The price paid is the present value of coupon interest and principal. By equating the PV of interest and principal such that it is equal to the price, we can ...
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.