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NewPorte Enterprises would like to issue $1,000 bonds and needs to determine the approximate rate it would need to pay investors. A firm with similar

  1. NewPorte Enterprises would like to issue $1,000 bonds and needs to determine the approximate rate it would need to pay investors. A firm with similar risk recently issued bonds with the following current features: a 6% coupon rate, 10 years until maturity, and a current price of $1,170.50. At what rate would NewPorte Enterprises expect to issue bonds, assuming annual interest payments?

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