Calculating the Interest cover on a objective question I needed to calculate the interest value having been provided the coupon rate. The loan started halfway through the year 1 July 17 and I assumed that the "Coupon Rate" I was provided was annual and therefore needed to be prorated 6/12 months before calculating the interest value. I did not get the correct answer. But I am not sure why? Aren't we to assume all interest rates given are annual?
