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Gabriele Enterprises has bonds on the market making annual payments, with 1 6 years to maturity, a par value of $ 1 , 0 0

Gabriele Enterprises has bonds on the market making annual payments, with

16

years to maturity, a par value of $

1, 000,

and selling for $

970 .

At this price, the bonds yield

12

percent. What must the coupon rate be on the bonds?

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