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A bond has a $1,000 face value, a market price of $960, and pays interest payments of $40 every year for 10 years. What is

A bond has a $1,000 face value, a market price of $960, and pays interest payments of $40 every year for 10 years. What is the coupon rate?

5.95 percent

6.45 percent

4.00 percent

3.78 percent

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