What level coupon rate would result in the same yield rate


A five-year $2,000 floating-rate bond with annual coupons had a $2,125 redemption amount and was sold at its face value. The coupon rates were 7%. 6.4%, 5.8%, 6.2%, and 6.6%, successively. What level coupon rate would result in the same yield rate to the investor for the five-year period?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What level coupon rate would result in the same yield rate
Reference No:- TGS02708815

Expected delivery within 24 Hours