When I looked up a bond, it was listed, with errors in the coupon rate, as &@*'s of 21, and the market price was listed as $1025.17. The market interest rate of the bond is 7.2 percent annually. What is the coupon rate?© BrainMass Inc. brainmass.com June 3, 2020, 9:53 pm ad1c9bdddf
The details of the bond are
1. Current Price = $1,025.17
2. Maturity = 2021 (the last 2 digits of 21 imply 2021 maturity) = 13 years from 2008
3. Par Value = $1,000 (all bonds have this as ...
The solution explains how to determine the coupon rate for a bond.