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A ​$1,000 par value bond has a current price of $884.94 and a maturity value of...

A ​$1,000 par value bond has a current price of $884.94 and a maturity value of $1,000 and matures in 6 years. If interest is paid semiannually and the bond is priced to yield 8​%, what is the​ bond's annual coupon​ rate?

The​ bond's annual coupon rate is (blank) % ? *round to 2 decimal places*

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Answer #1

Calculation is shown below

H - B C D E F G 1 In this case we will have to calculate the annual coupon amount from which coupon rate can be calculated 2

Working is given below

Coupon amount Par value of bond 1 In this case we will have to calculate the annual coupon amount from which coupon rate can

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