Ashes Divide Corporation has bonds on the market with 13.5 years to maturity, a YTM of 9.4 percent, and a current price of $1,075.6. The bonds make semiannual payments. The coupon rate on these bonds must be ??? percent.© BrainMass Inc. brainmass.com October 10, 2019, 3:06 am ad1c9bdddf
Face Value of bond=P=$1000
Number of coupon payments left=n=13.5*2=27
YTM=r=9.4% /2=4.7% semi annual
The solution calculates the coupon rate in the given case.