AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market...

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AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market...

AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?

Select one:

a. 3.75 percent

b. 4.20 percent

c. 4.25 percent

d. 7.50 percent

e. 8.40 percent

business finance

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Answer 1

Answer #1

YIELD = RATE = 4.03% NPER = YEARS TO MATURITY 12 FACE VALUE $ 1,000.00 PRICE = PV = $ 974.00 PMT = annual coupon payment $37.

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Answer 2

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