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Problem 6-5 Coupon Rates [LO 2] Big Canyon Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value
Problem 6-5 Coupon Rates [LO 2]
| Big Canyon Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a price of $972. At this price, the bonds yield 8.4 percent. |
| What must the coupon rate be on the bonds? |
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