A Bond Has a Face Value of $10,000,a Price of $12,000,and

question 63

Multiple Choice

A bond has a face value of $10,000,a price of $12,000,and coupon payments of $2000 for two years.The coupon rate of this bond is

• A)10%.
• B)16.7%.
• C)20%.
• D)30%.
• E) none of the above