Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time to maturity: 20 years Yield to maturity: 8 percent Current market price: $1,304.28 Quarterly payments What is the coupon rate? A. 10.12% B. 11.06% C. 14.38% D. 13.25%

Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time to maturity: 20 years Yield to maturity: 8 percent Current market price: $1,304.28 Quarterly payments What is the coupon rate? A. 10.12% B. 11.06% C. 14.38% D. 13.25%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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Question

Innovative Financial Inc. issues a bond with the following information:

Par: $1,000
Time to maturity: 20 years
Yield to maturity: 8 percent
Current market price: $1,304.28
Quarterly payments

What is the coupon rate?

	A.	10.12%
	B.	11.06%
	C.	14.38%
	D.	13.25%

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