A $1,000 face value coupon bond with a $60 coupon payment every year has a coupon rate of

Name: A $1,000 face value coupon bond with a $60 coupon payment every year has a coupon rate of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The coupon rate is the annual coupon payment divided by the face value of the bond, expressed as a percentage. In this case, the coupon payment is $60 per year, and the face value is $1,000, so the coupon rate is ($60/$1,000) x 100% = 6%. Therefore, the correct answer is (C) 6 percent.

A $1,000 Face Value Coupon Bond with a $60 Coupon