16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must the coupon rate be on the bonds? A. 8.05% В. 10% C. 7.5% D. 6%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
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16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and
selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must
the coupon rate be on the bonds?
A.
8.05%
B.
10%
C.
7.5%
D.
6%
Transcribed Image Text:16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must the coupon rate be on the bonds? A. 8.05% B. 10% C. 7.5% D. 6%
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