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The current price of a 1 4 - year, $ 1 , 0 0 0 par value bond is $ 1 , 0 0 0

The current price of a

14 -

year, $

1, 000

par value bond is $

1, 000 .

Interest on this bond is paid every six months, and the nominal annual yield is

16

percent. Given these facts, what is the annual coupon rate on this bond?

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