Homework question help

label Business & Finance
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schedule 1 Day
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John purchased a bond paying semiannual interest for a price of $1000. Yields on bonds of similar risk are 9.8%. The bond has a face value of $1000. Based on this information, what is the coupon rate of the bond?

 

Jul 2nd, 2015

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coupon rate= (1000 x 2)/1000


=2 

=or 20 percent

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Jul 2nd, 2015

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