A fixed rate bond with a $1,000 par value and annual coupon payments of $41.00 is trading

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A fixed rate bond with a $1,000 par value and annual coupon payments of $41.00 is trading at $883. Calculate the bond's coupon rate.

Note; Enter the coupon rate in percentage rounded to the second digit after the decimal point. For example, if the calculated coupon rate is 0.04517 or 4.517%, enter it as: 4.52

Related Book For answer-question

Advanced Financial Accounting An IFRS Standards Approach

ISBN: 9781285428765

4th Edition

Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah

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Posted Date: Mar 22, 2024 11:54 AM

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A fixed rate bond with a $1,000 par value and annual coupon payments of $41.00 is trading

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Expert Answer:

To calculate the bonds coupon rate we can use the formula Coupon Rate ... View the full answer

Advanced Financial Accounting An IFRS Standards Approach

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