Final answer:
The bond's coupon rate cannot be calculated without knowing the bond's price.
Step-by-step explanation:
The bond's coupon rate can be calculated by dividing the annual coupon payment by the bond's price and multiplying by 100%. Let's use the example given:
Suppose Ford Motor Company issues a five-year bond with a face value of $5,000 that pays an annual coupon payment of $150. To calculate the coupon rate, we divide the annual coupon payment by the bond's price:
Coupon rate = (Annual coupon payment / Bond's price) x 100%
Since we're not given the bond's price, we cannot accurately calculate the coupon rate.