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What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,304.48, if it has a yield to maturity of 7.8%? A. 5.43% B. 4.344% C. 6.516% D. 7.602%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 4MC

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Question

What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,304.48, if it has a yield to maturity of 7.8%?
A. 5.43%
B. 4.344%
C. 6.516%
D. 7.602%

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