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A company s debt has a face value of $ 1 0 0 million. The bond has a coupon rate of 5 % . The

A companys debt has a face value of $100 million. The bond has a coupon rate of 5%. The bond will pay an annual coupon payment, 5% of its face value, which is $5 million. The maturity time of the bond is 10 years. This means that the bond will have a 10-year term before it reaches its maturity rate.
What should the percentage to yield on the bond be?
What should the market rate be? And why?

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