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Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 2 years 3 years 4 years 5 years
Assume the zero-coupon yields on default-free securities are as summarized in the following table:
Maturity | 1 year | 2 years | 3 years | 4 years | 5 years |
Zero-Coupon YTMn | 3.70% | 4.10% | 4.30% | 4.60% | 4.80% |
Consider four-year, default-free security with annual coupon payments and a face value of $1,000 that is issued at par. What is the coupon rate of this bond? The par coupon rate is __________%. (Do not round until the final answer. Then round to two decimal places.)
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