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A bond is sold at $ 923.14 (below its par value of $ 1,000). The bond matures in 15 years and has a 10% market
A bond is sold at $ 923.14 (below its par value of $ 1,000). The bond matures in 15 years and has a 10% market yield (APR), compounded semi-annually. What is the coupon rate on the bond if the coupon rate is paid semiannually? The next payment occurs in six months from today. (Hint: use the annuity formula to evaluate the value of the bond, and then derive the value for C, the coupon paid semi-annually).
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