Bond annual coupon interest rate


Problem:

A company's outstanding bonds have a $1000 par value, and they mature in 5 years. Thier yeild to maturity is 9%, based on semiannual compounding, and the current market price is $853.61.

Requirement:

Question: What is the bond's annual coupon interest rate?

Note: Be sure to show how you arrived at your answer.

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Accounting Basics: Bond annual coupon interest rate
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