Coupon rate and required rate of return

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June 20, 2020 at 11:50 am #574329
utsavlt
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$3,500,000 par value of outstanding bond that pays annually 10% coupon rate with an annual before-tax yield to maturity of 12%. The bond issue has face value of $1,000 and will mature in 20 years.

Which is the coupon rate and investor required rate of return in this case ?
June 20, 2020 at 5:51 pm #574355
John Moffat
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The question specifically says that the coupon rate is 10% !!!

The before-tax yield to maturity is the investors required rate of return.
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