Sunshine Mining bonds have a $1,000 face value,pay $95 annual interest,mature in 2020,and are currently quoted at $1,302.50.The coupon rate of the bond is:

Question

Quizplus · Accepted Answer

To calculate the coupon rate, we need to divide the annual interest payment by the bond's face value.
Coupon rate = (Annual interest payment / Face value) x 100%
= (95 / 1000) x 100%
= 9.5%
Therefore, the answer is B.

Sunshine Mining Bonds Have a $1,000 Face Value,pay $95 Annual