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A major pharmaceutical company has many bonds that it has issued. One of those was originally issued at a discount. The bond was issued 5
A major pharmaceutical company has many bonds that it has issued. One of those was originally issued at a discount. The bond was issued 5 years ago. The bond has a par value of $1,000 and pays coupons of $65 every six months. The bond has 8 coupons left to pay before it matures and currently sells for 1,246. When issued the bond as rated BBB, but it is now rated AA-.
What is the coupon rate of this bond?
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