What Is the Coupon Rate for a Bond with 3

question 79

Multiple Choice

What is the coupon rate for a bond with 3 years until maturity,a price of $1,053.46,and a yield to maturity of 6%? Interest is paid annually.

• A) 6%
• B) 8%
• C) 10%
• D) 11%

---

Definitions:

Piece Rate Pay Systems

A compensation method where workers are paid a fixed sum for each unit of production completed, incentivizing higher productivity.

External Control

Regulatory or supervisory mechanisms imposed by external entities to govern the operations and behaviors of organizations.

Deferred

Postponed or delayed to a later time.

Profit-Sharing Plan

A company program that gives employees a share in the profits of the company, often based on the company's yearly earnings.