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A company releases a five-year bond with a face value of $1,000 and coupons paid semi-annually. If market interest rates imply a yield to maturity
A company releases a five-year bond with a face value of $1,000 and coupons paid semi-annually. If market interest rates imply a yield to maturity (YTM) of 6%, what should be the coupon rate offered if the bond is to trade at par? A. 3% B. 9% C. 6% D. 4% E. 8%
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Investment Science
Authors: David G. Luenberger
2nd Edition
0199740089, 978-0199740086
