Suppose a 5-year, $1,000 bond with annual coupons has a price of $904.09 and a yield to maturity of 6.1%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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Suppose a 5-year, $1,000 bond with annual coupons has a price of $904.09 and a yield to maturity of 6.1%. What is the bond's coupon rate?
The bond's coupon rate is % (Round to three decimal places.)
Transcribed Image Text:Suppose a 5-year, $1,000 bond with annual coupons has a price of $904.09 and a yield to maturity of 6.1%. What is the bond's coupon rate? The bond's coupon rate is % (Round to three decimal places.)
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