Cashmere Clothes has a bond outstanding that has a $1,000 par value and a market price of $1,322. The bond has 25 years remaining to
Cashmere Clothes has a bond outstanding that has a $1,000 par value and a market price of $1,322. The bond has 25 years remaining to maturity. Assuming an annual market interest rate of 8% and that the bond pays interest semiannually, calculate the ANNUAL coupon rate on the bond. (Round to nearest whole percentage). Hint: set up bond price formula and solve for the unknown.
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Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
