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The current price of a 10-year, $1,000 par value bond is $1,000. Interest on this bond...

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Finance

The current price of a 10-year, $1,000 par value bond is $1,000.Interest on this bond is paid every six months, and the simpleannual yield is 14 percent. Given these facts, what is the annualcoupon rate on this bond? a. 10% b. 12% c. 14% d. 17% e. 21%

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4.3 Ratings (867 Votes)
Par value future value 1000 Present value 1000 Yield to maturity 142 7 Time 10 years2 20 semiannual periods The question is solved by    See Answer
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Transcribed Image Text

The current price of a 10-year, $1,000 par value bond is $1,000.Interest on this bond is paid every six months, and the simpleannual yield is 14 percent. Given these facts, what is the annualcoupon rate on this bond? a. 10% b. 12% c. 14% d. 17% e. 21%

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