A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate?

A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Round your answer to 1 decimal place.)

Coupon rate

4.6  %

Explanation:

Coupon rate = 4.6%, which remains unchanged. The coupon payments are fixed at $46 per year.