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A $1,000 face value bond has a price of $ 940. The bond pays the annual coupon of 50 dollars. What is the coupon rate?

A $1,000 face value bond has a price of $ 940. The bond pays the annual coupon of 50 dollars. What is the coupon rate?

Question 4 options:

5.00 percent

7.56 percent

6.50 percent

4.89 percent

3.25 percent

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