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Merton Enterprises has bonds with a face value of $1,000 on the market making annual payments, with 4 years to maturity, and selling for $

Merton Enterprises has bonds with a face value of $1,000 on the market making annual payments, with 4 years to maturity, and selling for $1,050. The yield to maturity (YTM) is 7% (compounded annually). What must the coupon rate be on Mertons bonds?

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