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 Yields 7.00% 7.60​% 7.90% 8.20​% 8.30%   Consider a​ 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 _____%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...
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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
​Zero-Coupon Yields
7.00%
7.60​%
7.90%
8.20​%
8.30%
 
Consider a​ 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 _____%
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