A Coupon Bond with a Face Value of $25,000 and Quarterly

question 98

Multiple Choice

A coupon bond with a face value of $25,000 and quarterly coupon payments has five years to maturity and a yield to maturity of 5%.If the current price is $10,980,what is the coupon rate?

• A)2%
• B)4.39%
• C)0.5%
• D)0%
• E)5%

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