What is the coupon rate for a bond with 3 years until maturity,a price of $1,053.46,and a yield to maturity of 6%? Interest is paid annually.

Name: What is the coupon rate for a bond with 3 years until maturity,a price of $1,053.46,and a yield to maturity of 6%? Interest is paid annually.
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$1,053.46 = PMT {(1 / 0.06) − [1 / 0.06(1.16)³]} + $1,000 / 1.06³PMT = $80Coupon rate = $80 / $1,000 = 0.08, or 8%

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