O'Brien LM's outstanding bonds have a $1.000 par value, and they mature in 22 years. Their yield to maturity is 900% they pay interest semiannually, and they sell at a price of $850 What is the band's nominal (anual) coupon interest rate? O. 7M% Ob. 100% Ok 37% Od 70%

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Chapter7: Bonds And Their Valuation
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11
4
O'Brien Ltd's outstanding bonds have a $1,000 par value, and they mature in 22 years. Their yield to maturity is 9.00%, they pay interest semiannually, and they sell at a price of $550
What is the band's nominal (annual) coupon interest rate?
a. 7M%
Ob. 100%
OF 371%
Cd. 7.47%
Transcribed Image Text:11 4 O'Brien Ltd's outstanding bonds have a $1,000 par value, and they mature in 22 years. Their yield to maturity is 9.00%, they pay interest semiannually, and they sell at a price of $550 What is the band's nominal (annual) coupon interest rate? a. 7M% Ob. 100% OF 371% Cd. 7.47%
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