The current price of a 10-year, $1,000 par value bond is $1,000. Interest on this bond...

90.2K

Verified Solution

Question

Finance

The current price of a 10-year, $1,000 par value bond is $1,000.Interest on this bond is paid every six months, and the simpleannual yield is 14 percent. Given these facts, what is the annualcoupon rate on this bond? a. 10% b. 12% c. 14% d. 17% e. 21%

Answer & Explanation Solved by verified expert
4.3 Ratings (867 Votes)
Par value future value 1000 Present value 1000 Yield to maturity 142 7 Time 10 years2 20 semiannual periods The question is solved by    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

The current price of a 10-year, $1,000 par value bond is $1,000.Interest on this bond is paid every six months, and the simpleannual yield is 14 percent. Given these facts, what is the annualcoupon rate on this bond? a. 10% b. 12% c. 14% d. 17% e. 21%

Other questions asked by students