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All of the securities below have annual payments. [Do not round interim calculations] Years Face Security Rating Maturity Value Coupon Rate Market Price Treasury

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All of the securities below have annual payments. [Do not round interim calculations] Years Face Security Rating Maturity Value Coupon Rate Market Price Treasury 1 $ 1.000 0.00% $ 965.00 Treasury 3 $ 1,000 1.90% $ 939.06 Treasury 5 $ 1,000 4.30% $ 932.42 Treasury 10 $ 1,000 6.80% $ 1,007.12 Treasury 15 $ 1,000 6.60% $ 908.25 Corp A A 5 $ 1,000 8.10% $ 990.00 Corp 8 BB 10 $ 1,000 7.90% $ 859.881 Corp C AA 15 $ 1.000 7.00% $ 860.001 You are advising the CEO and CFO of an IU Ventures portfolio company in the issuance of new bonds. The company has been rated as BB and wants to Issue 3-year bonds and receive full face value. Assuming the bonds are trading at equilibrium, how much should each annual coupon payment be for the new bonds? Multiple Choice.

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