Question

A coupon bond that pays interest annually is selling at par value of $1000, matures in...

A coupon bond that pays interest annually is selling at par value of $1000, matures in 5 years, and has a coupon rate of 9%. The maturity rate was calculated in Excel and is 9%. How to solve the maturity rate manually, with the detailed explanations?

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Answer #1

coupon rate =9%

bond value= 1000

coupan amount= 90

maturity rate= 90/1000*100= 9%

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