QUESTION 2

On June 1^st, 2020 Coca Cola (KO) issued bonds for one billion dollars. The bonds have a par value of $1,000, coupon rate of 2.75% payable semiannually, and 40 years maturity (maturity date: 6/1/2060). When the bonds were issued, investors paid $970.30 for each bond. What was the market interest rate (yield) on these bonds? (HINT: don't forget to annualize the interest rate)

		1.00% per year.
		1.375% per year.
		1.44% per year.
		2.875% per year.