Final answer:
To calculate the percentage value in a coupon problem, divide the dollar value by the number of coupons. This will give you the value for each coupon in percentage terms. It's a fundamental calculation in financial mathematics when dealing with bonds and their yields.
Step-by-step explanation:
When faced with a coupon problem and the need to calculate the percentage value, the correct approach is to divide the dollar value by the number of coupons. This calculation provides the percentage value for each coupon. To illustrate, if you have a $1,000 bond with an 8% coupon rate, this means you will receive $80 in coupons per year (which is $1,000 × 8%). If you're looking at individual coupon values, and for example, you have coupons that total to $10 and there are 20 coupons, you would calculate the value of each coupon by dividing $10 by 20, giving you $0.50 per coupon. These principles apply to various financial instruments, including simple or more complex bond calculations, where you are looking to understand the return or yield provided by such a financial instrument.