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Question
Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate?a. 6.27%
b. 6.60%
c. 6.95%
d. 7.32%
e. 7.70%
Answer
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