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You have just purchased a 15 year, ?$1,000 par value US Government bond for? $909.20. The...

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Finance

You have just purchased a 15 year, ?$1,000 par value USGovernment bond for? $909.20. The yield to maturity on the bond is?8.6%. What is the coupon? rate?

A. ?9.0% B. ?7.0% C. ?8.6% D. ?7.5% E. ?15.0%

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Calculation of Annual Coupon Rate of the Bond Par Value 1000 Bond Price 90920 Annual Yield to Maturity 860 Maturity Years 15 Years Lets take C as the annual coupon amount The Current Price of the bond    See Answer
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You have just purchased a 15 year, ?$1,000 par value USGovernment bond for? $909.20. The yield to maturity on the bond is?8.6%. What is the coupon? rate?A. ?9.0% B. ?7.0% C. ?8.6% D. ?7.5% E. ?15.0%

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