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A 20-year maturity mortgage-backed bond is issued with a par value of $10,000. At initial issue, bond market investors require an 8 percent interest rate
A 20-year maturity mortgage-backed bond is issued with a par value of $10,000. At initial issue, bond market investors require an 8 percent interest rate return on the bond and that prices the bond at $8,036. What is the annual coupon rate? (Give answer to 2 decimal places if applicable).
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