# bond's coupon rate

I need help with the assignment below to ensure my answers are correct. I want to make the highest grade possible.

Thank You!

--------------

1. Suppose a five year, $1000 bond with annual coupon has a price of $900 and yield to maturity of 6%. What is the bond's coupon rate?

2. Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to row by 6% per year. What is its price per share if its equity cost of capital is 11%?

© BrainMass Inc. brainmass.com June 4, 2020, 12:02 am ad1c9bdddfhttps://brainmass.com/business/bond-valuation/bond-s-coupon-rate-315127

#### Solution Preview

Please see ** ATTACHED ** file(s) for complete solutions and details!!

1. Suppose a five year, $1000 bond with annual coupon has a price of $900 and yield to maturity of 6%. What is the bond's coupon rate?

First Here we have to find the value of Annuity

I Price= Present ...

#### Solution Summary

Response helps in explaining of computing the bond's coupon rate