A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25 each. What is the coupon rate?

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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A bond has a $1,000 face value, a market
price of $1,045, and pays semiannual
payments of $42.25 each. What is the
coupon rate?
Transcribed Image Text:A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25 each. What is the coupon rate?
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