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Seether Co. has bonds with 18 years to maturity, a par value of $1,000, a YTM...

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Finance

Seether Co. has bonds with 18 years to maturity, a par value of$1,000, a YTM of 6.4 percent, ,and a current price of $1,306.50.The bonds make semiannual payments. What is the coupon rate be onthese bonds?

Answer & Explanation Solved by verified expert
3.6 Ratings (325 Votes)
Annual Coupon rate of the Bond The Coupon rate of the Bond is calculated using financial calculator as follows Normally the rate is calculated either using EXCEL Functions or by    See Answer
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Transcribed Image Text

Seether Co. has bonds with 18 years to maturity, a par value of$1,000, a YTM of 6.4 percent, ,and a current price of $1,306.50.The bonds make semiannual payments. What is the coupon rate be onthese bonds?

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