Answer:
3.63%
Explanation:
For computing the bond coupon rate, first we have to determine the PMT by applying the PMT formula that is shown on the attachment
Given that,
Present value = $900
Future value = $1,000
Rate of interest = 6%
NPER = 5 Years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the PMT is $36.26
Now the coupon rate is
= $36.26 ÷ $1,000
= 3.63%
