Question
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a current
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a current price of $1,186.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
A. 12.58%
B. 10.52%
C. 25.02%
D. 12.48%
E. 21.09%
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
