A $1,000 par value bond has a current price of $797.71 and a maturity value of $1,000 and matures in 5 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? The bond's annual coupon rate is%. (Round to three decimal places.)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
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A $1,000 par value bond has a current price of
$797.71 and a maturity value of $1,000 and matures
in 5 years. If interest is paid semiannually and the
bond is priced to yield 8%, what is the bond's annual
coupon rate?
47
37
HAMM
HLAR
Garant
300 M
AGE
P
K
The bond's annual coupon rate is%. (Round to
three
decimal
MORNIN
UKURA
HAS MAGAN
CARMEN
555
20
M
BETHAN
MEN
SECON
PA
places.)
ASSAM
B
S
CADERNE
Candy
224720
15525
Desen
8201
Transcribed Image Text:A $1,000 par value bond has a current price of $797.71 and a maturity value of $1,000 and matures in 5 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? 47 37 HAMM HLAR Garant 300 M AGE P K The bond's annual coupon rate is%. (Round to three decimal MORNIN UKURA HAS MAGAN CARMEN 555 20 M BETHAN MEN SECON PA places.) ASSAM B S CADERNE Candy 224720 15525 Desen 8201
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