Find the annual coupon interest rate


Commonwealth Company has 100 bonds outstanding (maturity value = $1,000). The required rate of return on these bonds is currently 10%, and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. What is the annual coupon interest rate?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find the annual coupon interest rate
Reference No:- TGS0552564

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)