Caterpillar, Inc. currently has bonds outstanding with a par value of $1,000, a current price of $1,095, a YTM of 8.3 percent, and11 years to maturity. The bonds make semiannual payments. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Caterpillar, Inc. currently has bonds outstanding with a par value of $1,000, a current price of $1,095, a YTM of 8.3 percent, and11 years to maturity. The bonds make semiannual payments. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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