Gabriele enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and selling for $952. at this price, the bonds yield 6.1 percent. what must the coupon rate be on the bonds? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

=5.32%(Approx)

Explanation:

Current price=Annual coupon*Present value of annuity factor(6.1%,8)+$1000*Present value of discounting factor(6.1%,8)

952=Annual coupon*6.18529143+1000*0.622697222

Annual coupon=(952-622.697222)/6.18529143

=$53.24(Approx).

Coupon rate=Annual coupon/Face value

=$53.24/1000

=5.32%(Approx)

What is this

Explanation:

But thanks for free points