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Arsenalo plc. has just issued level coupon bonds on the market with 7.5 years to maturity and a yield to maturity (YTM) of 12%, and

Arsenalo plc. has just issued level coupon bonds on the market with 7.5 years to maturity and a yield to maturity (YTM) of 12%, and at a current fair market price of 950. The bonds make quarterly payments. What must be the coupon rate on these bonds? Face value of these bonds is 1,000.

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