Problem 7-4

Gabriele Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and selling for $860. At this price, the bonds yield 9.8 percent. What must the coupon rate be on the bonds? Multiple Choice O 15.53% O 7.77% O 9.03% O 9.80% 7.87%