If a corporate bond with a face value of $2000 pays coupon payments yearly of $50, 2.5%.is the coupon rate
A corporate bond's coupon rate is calculated by dividing the number of annual coupon payments by the bond's par value. Say, a bond was issued having a value of $1000 that generates an annual payment of $25 coupon would have a coupon rate of 2.5%
In this case, there is a corporate bond with a face value of $2,000 and it pays annual 2.5%.payments of $50. Then the coupon rate is calculated by dividing the number of annual coupon payments with the bond's par value:
(50/2000)*100 = 2.5%
Hence the coupon rate is 2.5%.
Learn more about corporate bond here: https://brainly.com/question/14064867
#SPJ4
