A bond paying 50 a year with a face value of 1,000 has a coupon rate of:

Question

Accepted Answer

B. 5 percent

1. The coupon rate is the annual payment over the face value.
2. 50 divided by 1,000 is 0.05.
3. That is a coupon rate of 5 percent.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._

Answer

15 percent

Answer

50 percent

Answer

0.5 percent

A bond paying 50 a year with a face value of 1,000 has a coupon rate of:

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