Question
Asked Oct 14, 2019
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Skyscraper Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03%. What is the coupon rate?

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Expert Answer

Step 1

Calculation of coupon rate:

Coupon rate is 3.75%.

Excel spread shee...

A
В
Particulars
2 PV
Values
1
($974)
з FV
YTM
$1,000
4.03%
4
5 Number of years
6 PMT
12
$37.52
Coupon rate
3.75%
7
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A В Particulars 2 PV Values 1 ($974) з FV YTM $1,000 4.03% 4 5 Number of years 6 PMT 12 $37.52 Coupon rate 3.75% 7

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