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Ashes Divide Corporation has bonds on the market with 15 years to maturity, a YTM of 11.0 percent (APR), and a current price of $1,146.50.
Ashes Divide Corporation has bonds on the market with 15 years to maturity, a YTM of 11.0 percent (APR), and a current price of $1,146.50. The bonds make semiannual payments. What must the coupon rate be on these bonds (as an APR)? Note: first find the semi-annual payment. Then convert it into an annual payment and use this annual payment to find the coupon rate as an APR. (Do not round your intermediate calculations.) |
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