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FINC 3304 - Chapter 6 Problems Problem 4) Merton Enterprises has bonds on the market making annual payments, with 12 years to maturity, and selling

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FINC 3304 - Chapter 6 Problems Problem 4) Merton Enterprises has bonds on the market making annual payments, with 12 years to maturity, and selling for $963. At this price, the bonds yield 7.5 percent. The face value of these bonds is $1,000. What must the coupon rate be on Merton's bonds? price 1 and Coupon rateCoupon Formula: Bond 1 + r 1+T Face value

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