Beam Inc. bonds are trading today for a price of $552.24. The bond currently has 21 years until maturity and has a yield to maturity of 8.72%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond? The coupon rate of the bond is %. (Round to one decimal place.)
Beam Inc. bonds are trading today for a price of $552.24. The bond currently has 21 years until maturity and has a yield to maturity of 8.72%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond? The coupon rate of the bond is %. (Round to one decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Beam Inc. bonds are trading today for a price of $552.24. The bond currently has 21 years until maturity and has a yield to maturity of 8.72%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond?
The coupon rate of the bond is %. (Round to one decimal place.)
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