Calculate the coupon rate for a 5 year £500 bond that has a coupon value of £10
(10 x 5) (coupon value x length of bond) = 5050/500 (previous answer/bond value) = 0.10.1 x 100 (coupon rate as percentage) = 10%
LC
(10 x 5) (coupon value x length of bond) = 5050/500 (previous answer/bond value) = 0.10.1 x 100 (coupon rate as percentage) = 10%