Homework answers / question archive / Tutak Industries issued a $1,000 face value bond a number of years ago that will mature in eight years

Tutak Industries issued a $1,000 face value bond a number of years ago that will mature in eight years

Finance

Share With

Tutak Industries issued a $1,000 face value bond a number of years ago that will mature in eight years. Similar bonds are yielding 8%, and the Tutak bond is currently selling for $1,291.31. Compute the coupon rate on this bond. (In practice we generally aren’t asked to find coupon rates.)(Hint: Substitute and solve for the coupon payment.)