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XYZ currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One...

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Finance

XYZ currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on Dec 1, 2031, approximately 15 years from today. It has a yield to maturity of 4.80%. For simplicity, assume that coupons are paid annually. The bond is currently selling for $1,105 based on a par value of $1,000. What is the coupon rate?

a. 6.00%

b. 5.20%

c. 4.20%

d. 5.80%

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