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Mac Co. is planning to issue a bond with a face value of 2.5 million dollars. The yield to maturity on this bond is 8%.

Mac Co. is planning to issue a bond with a face value of 2.5 million dollars. The yield to maturity on this bond is 8%. The maturity of the contract is 240 months. The current price of the bond is 1.987 million dollars.

Compute the coupon rate on this bond coupon paid semiannually.

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