What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,376.93, if it has a yield to maturity of 7.9%? A. 6.923% OB. 5.769% OC. 8.077% OD. 4.615%

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.