If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40,what is the coupon rate?

Name: If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40,what is the coupon rate?
Brand: Quizplus
Rating: 5.0 (54 reviews)

Question

Quizplus · Accepted Answer

The coupon rate is the percentage of the face value that the bond pays as annual interest, which is calculated by dividing the annual coupon payment by the face value of the bond and multiplying by 100. 
Coupon rate = (40/1000) x 100 = 4%

If a Corporate Bond with a Face Value of $1,000