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Global Co wants to issue 10-year, semiannual coupon bonds at par. Similar bonds have a yield to maturity of 9.5 percent. What coupon rate should
Global Co wants to issue 10-year, semiannual coupon bonds at par. Similar bonds have a yield to maturity of 9.5 percent. What coupon rate should Global Co set on its bonds? A) 9.50 percent B) 10.10 percent C) 9.55 percent D) 9.87 percent E) 9.69 percent Lingo Inc needs to sell 20-year, zero-coupon bonds with a par value of $1,000. The market yield on similar bonds is 6.49 percent. What periodic coupon payments it needs to promise to the buyers if they are demanding a price of $500 per bond? Assume semiannual compounding. A) 19.84 B) 28.45 C) 9.95 D) 25.47 E) 100.89
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