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The ERE bond has a 25-year maturity and a $1,000 par value. The interest rate is 10%. The coupon payments are paid semiannually. The bond

The ERE bond has a 25-year maturity and a $1,000 par value. The interest rate is 10%. The coupon payments are paid semiannually. The bond is selling at the price of $850. What is the bond's (annual) coupon rate?

Select one:

a. 7.22%

b. 6.27%

c. 8.36%

d. 6.95%

e. 6.60%

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