Question
M&M Manufacturing has an outstanding issue of bonds with a $1,000 face value. The bonds have a remaining life of exactly 25 years, and they
M&M Manufacturing has an outstanding issue of bonds with a $1,000 face value. The bonds have a remaining life of exactly 25 years, and they pay semi-annual coupons. The current price of $886.37 implies an annual yield to maturity (YTM) of 9%. What is the coupon rate?
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A. 7.85%
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B. 7.47%
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C. 7.96%
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D. 3.98%
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E. 3.92%
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
