## Coupon rate of a Bond:

A bond is issued by a firm to raise capital. The coupon rate is the rate at which the firm pays the periodic coupons to the investors. The current price of bond is the present value of all the payments made discounted at yield to maturity.

1. The coupon rate of bond is 7.50%

Calculating the coupon rate:

• Face value = \$1,000
• Number of periods, n = 22
• Yield to maturity, r = 5.26% =...

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