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Smiley Industrial Goods has $1,000 face value bonds on the market with annual interest payments, 13.5 years to maturity, and a market price of $1,000.

Smiley Industrial Goods has $1,000 face value bonds on the market with annual interest payments, 13.5 years to maturity, and a market price of $1,000. At this price, the bonds yield 6.4 percent. What must be the coupon rate on these bonds? Select one: a. 3.67 percent b. 7.50 percent c. 6.66 percent d. 6.40 percent e. 3.33 percent

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