Final answer:
The coupon rate of a bond with a par value of $1,000 and semiannual coupon payments of $49 is 9.8% when rounded to one decimal place.
Step-by-step explanation:
To find the coupon rate of a bond with a par value of $1,000 making semiannual coupon payments of $49, we start by calculating the annual coupon payment. Since payments are made semiannually, there are two payments per year for a total annual coupon payment of $49 x 2 = $98. Next, we divide the annual coupon payment by the par value of the bond and multiply by 100 to express it as a percentage:
Coupon Rate = (Annual Coupon Payment / Par Value) x 100
Coupon Rate = ($98 / $1,000) x 100 = 9.8%
Hence, the coupon rate of the bond is 9.8%, rounded to one decimal place.