ABC Pharmaceuticals Inc. issued $100 million in bonds due in 10 years. After discussions with its investment banker, ABC decided that the bonds would be issued with a coupon rate of 7 percent with interest paid annually. The 7% coupon bonds were issued at par.

At the time the bonds were issued, the bonds had a yield to maturity (required rate of return) _______

Group of answer choices

Less than the coupon rate

Equal to the coupon rate.

Greater than the coupon rate

d. Not enough information provided