ABC Fabricators just issued par 25-year bonds. The bonds sold for 738.38 and pay interest semi-annually. Investors require a rate of 8.5% on the bonds. What is the bonds coupon rate?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...
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ABC Fabricators just issued par 25-year bonds. The bonds sold for 738.38 and pay interest semi-annually. Investors require a rate of 8.5% on the bonds. What is the bonds coupon rate?( use excel)

 

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