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Question
The current price of a 10-year, $1,000 par value bond is $1,158.91. Interest on this bond is paid every six months, and the simple annual yield is 14 percent. From the given information, calculate the annual coupon rate on the bond.
a. 10%
b. 12%
c. 14%
d. 17%
e. 21%
Answer
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Related questions
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Which of the following is true about financial institutions in the United States compared to those in other countries?
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Q:
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e. Firms with relatively low debt ratios have higher expected returns when business is poor.