Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon

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Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value.

What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?

(Hint: What is the effective annual yield on the bond?)

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Investments

ISBN: 9781259277177

11th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 24, 2024 05:04 AM

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Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon

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Investments

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