Assume the zero-coupon yields on default-free securities are as summarized in the following table: ...
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Finance
Assume the zero-coupon yields on default-free securities are as summarized in the following table:
Maturity
1 year
2 years
3 years
4 years
5 years
Zero-Coupon
YTMn
3.70%
4.10%
4.30%
4.60%
4.80%
Consider four-year, default-free security with annual coupon payments and a face value of $1,000 that is issued at par. What is the coupon rate of this bond? The par coupon rate is __________%. (Do not round until the final answer. Then round to two decimal places.)
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