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Suppose a five-year, $1,000 bond with annual coupons has a price of$900.82 and a yield to maturity of 6.3%. What is thebond's coupon rate?
Suppose a five-year, $1,000 bond with annual coupons has a price of$900.82 and a yield to maturity of 6.3%. What is thebond's coupon rate?
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To calculate the bonds coupon rate we can use the formula for current yield which is ...
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
