Schlitz Brewery Inc.bonds are trading today for a price of $961.29.The bond currently has 10 years until maturity and has a yield to maturity of 5%.The bond pays annual coupons and the next coupon is due in one year.What is the coupon rate of the bond?

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P_bond = C × 11ea7fdb_fbfd_7b67_a768_ff5039dd5284_TB2902_11 + 11ea7fdb_fbfd_7b68_a768_f924ef4c1715_TB2902_11 961.29 = C × 11ea7fdb_fbfd_7b69_a768_9f48f8156f01_TB2902_11 + 11ea7fdb_fbfd_a27a_a768_b11025ff5570_TB2902_11 = 347.38 = C × 11ea7fdb_fbfd_a27b_a768_1528b2dcef02_TB2902_11 C = 45 Using a financial calculator: N = 10, I/Y = 5, PV = -961.29, FV = -1,000, CPT PMT = $45 Coupon Rate = 11ea7fdb_fbfd_a27c_a768_972208efd3ea_TB2902_11 = 4.5%