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Gabriele Enterprises has bonds on the market making annual payments, with 20 years to maturity, a par value of $1,000, and selling for $850. At

Gabriele Enterprises has bonds on the market making annual payments, with 20 years to maturity, a par value of $1,000, and selling for $850. At this price, the bonds yield 7 percent. What must the coupon rate be on the bonds?

7 %

4.68 %

5.58 %

11.17 %

6.57 %

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