Answer:
6.82%
Explanation:
In this question we use the PMT formula that is shown on the attachment below:
Given that,
Present value = 102.037% × $2,000 = $2,040.74
Future value = $2,000
Rate of interest = 6.62% ÷ 2 = 3.31%
NPER = 18 years 2 = 36 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $68.15
Now the coupon rate is
= PMT ÷ face value × 2
= $68.15 ÷ $2,000 × 2
= 6.82%
