XYZ currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on Dec 1, 2031, approximately 15 years from today. It has a yield to maturity of 4.8%. For simplicity, assume that coupons are paid annually. The bond is currently selling for $1,105, based on a face (par) value of $1,000. What is the coupon rate?

Answer rating: 100% (QA)

Current priceAnnual couponPresent value of annuity factor48151000Present value of dis... View the full answer