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A newly issued bond has a 7 percent coupon with semiannual interest payments. The bonds are currently priced at par value. The effective annual rate
A newly issued bond has a 7 percent coupon with semiannual interest payments. The bonds are currently priced at par value. The effective annual rate provided by these bonds must be:
Answer cannot be determined from the information provided. | |
greater than 7 percent. | |
3.5 percent. | |
7 percent. | |
greater than 3.5 percent but less than 7 percent. |
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