Answer:
8%
Explanation:
The coupon is the amount of periodic cash payable to bondholders which is usually a percentage of the bond's face value.
The coupon of $80 is payable annually in this case, hence, based on the face value( par value) of $1,000 per bond, the coupon rate is computed as shown thus:
annual coupon=face value*coupon rate
annual coupon=$80
face value=$1000
coupon rate=unknown
$80=$1000*coupon rate
coupon rate=$80/$1000
coupon rate=8%
