What will be the coupon rate of a $100 face value bond that pays $8 annually...

Question

Question

Answer 1

Answer #1

Correct answer: 8%

Coupon amount Coupon rate = - face value

Coupon rate= 100

Coupon rate = 8%

Please note: Coupon rate of Bond is fixed until maturity of Bond, Change in Market interest rate has no impact on coupon rate.

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Answer 2

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