Bond's coupon rateThe coupon rate on the bond is 7.00%Explanation:Given,Principal amount (face value) = $1,000Market price = $899.31Maturity period = 5 yearsYield to maturity = 6.3%Since the market price of the bond is less than the face value of the bond, it is said to be trading at a discount.So, we have the present value of a bond which is given as:PV = C / (1+i)¹ + C / (1+i)² + ..... + C / (1+i)^n + F / (1+i)^nwhere,C = Coupon paymentF = Face valuei = Required yield or rate of returnn = Maturity periodPV = Market priceNow, substituting the values given in the question, we get,899.31 = C / (1+0.063)¹ + C / (1+0.063)² + C / (1+0.063)³ + C / (1+0.063)⁴ + C / (1+0.063)⁵ + 1000 / (1+0.063)⁵To solve this equation, we can use the financial calculator or excel sheet.By using financial calculator or excel sheet, we get the coupon rate as 7%.Therefore, the bond's coupon rate is 7.00%.