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Hey guys, I have a question, that has to be solved through Excel, can anyone help me? Assume the zero-coupon yields on default-free securities are

Hey guys, I have a question, that has to be solved through Excel, can anyone help me?

"Assume the zero-coupon yields on default-free securities are as summarized in the following table:

Maturity Zero Coupon Yields

1 year 6.80 %

2 years 7.40 %

3 years 7.80 %

4 years 8.00 %

5 years 8.40 %

Consider a four-year, default-free security with annual coupon payments and a face value of $1,000 that is issued at par.

Question: What is the coupon rate of this bond? The par coupon rate is closest to:

A. 6.75%

B. 5.85%

C. 7.94%

D. 4.36%

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