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What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,411.72, if it has a yield to maturity of 7.9%? OA. 5.888% OB. 7.066% OC. 4.71% OD. 8.243%

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

Problem 4MC

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What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,411.72, if it has a yield to maturity of 7.9%?
OA. 5.888%
OB. 7.066%
O C. 4.71%
D. 8.243%

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