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Here we need to find the coupon rate of the bond. All we need to do is to set up the bond pricing equation and
Here we need to find the coupon rate of the bond. All we need to do is to set up the bond pricing equation and solve for the coupon payment as follows: P = $_________ = C(PVIFA5.1%,8) + $1,000(PVIF5.1%,8) Solving for the coupon payment, we get: C = $_________ The coupon payment is the coupon rate times par value. Using this relationship, we get: Coupon rate = $_______/$_______ Coupon rate = ._________, or _________%
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