A bond with a current yield of 6.43 percent is quoted at 95.349 . What is the coupon rate of the bond:? a. \( 5.82 \% \) b. \( 6.13 \% \) c. \( 5.72 \% \) d. \( 6.54 \% \) e. \( 6.04 \% \)

To find the coupon rate of the bond, we can use the formula for current yield: \[ \text{Current Yield} = \frac{\text{Coupon Payment}}{\text{Current Price}}. \] Given: - Current Yield = 6.43% (or 0.0643) - Current Price = 95.349 (which is $953.49 when expressed in terms of $1000 face value) Let’s rearrange the formula to solve for the coupon payment: \[ \text{Coupon Payment} = \text{Current Yield} \times \text{Current Price} = 0.0643 \times 953.49 = 61.24. \] Now, knowing that the bond typically has a face value of $1000, we can calculate the coupon rate: \[ \text{Coupon Rate} = \frac{\text{Coupon Payment}}{\text{Face Value}} = \frac{61.24}{1000} = 0.06124 \text{ or } 6.12\% . \] The closest option provided is \( 6.13\% \), making the answer (b) \( 6.13\% \). So, the correct answer is b. \( 6.13\% \).