Answer:
8%
Step-by-step explanation:
The computation of the coupon rate is as follows
But before that we have to determine the PMT which is shown below
Given that
PV = $134,996
FV = $100,000
NPER = 11 × 2 = 22
RATE = 4.03% ÷ 2 = 2.015%
The formula is shown below
= PMT(RATE;NPER;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the PMT is $4,000
Now the coupon rate is
= Coupon payment ÷ Par value × 2
= $4,000 ÷ 100,000 × 2
= 8%
