Answer :
The coupon rate for the 5-year semiannual payment floating-rate security is 8.45%, derived from adding 45 basis points to the current 8% reference rate.
The coupon rate of a bond is the annual interest payment paid to the bondholder, based on the bond's face value. In the question provided, for a 5-year semiannual payment floating-rate security, the coupon rate is determined by adding a set number of basis points to a reference rate. In this case, the current reference rate is 8% and we need to add 45 basis points (where 1 basis point is 0.01%), giving us a coupon rate of 8.45%.
