Computation par value of bonds

Reference no: EM1314369

Moussawi Ltd's outstanding bonds have a $1,000 par value, and they mature in 5 years. Their yield to maturity is 9%, based on semi-annual compounding, and the current market price is $853.61. The bonds have a par value of $1,000. What is the bond's annual coupon interest rate?

a. 5.10%
b. 5.20%
c. 5.30%
d. 5.40%
e. 5.50%

Reference no: EM1314369

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