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Tom [10]
2 years ago
4

Smiley Industrial Goods has bonds on the market making annual payments, with 13 years to maturity, and selling for $1,095. At th

is price, the bonds yield 6.4 percent. What must the coupon rate be on these bonds?
Business
1 answer:
Pavel [41]2 years ago
4 0

Answer: The coupon rate should be at 7.5%

Explanation: Couple payment is the payment receives annually by the bondholder on a bond from the day of its issuance till it reaches its maturity.

Couple rate = Sum of couple paid per year/ bond face value. Usually expressed in percentage.

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