Moonbeam, Inc. has a bond issue outstanding with a face value of $1,000 trading at $988.52. It

Question:

Moonbeam, Inc. has a bond issue outstanding with a face value of $1,000 trading at $988.52. It makes a semiannual coupon payment, has a YTM of 6.31%, and will mature in 8.56 years. What is the coupon rate on this bond?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...