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Chapter MC, Section .05, Problem 060.Algo Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%,

Chapter MC, Section .05, Problem 060.Algo

Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,150. What is the bond's nominal (annual) coupon interest rate?

Select the correct answer.

a. 10.58%

b. 10.69%

c. 10.47%

d. 10.80%

e. 10.91%

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