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The newly issued bonds of the Waldorf Corp. offer a 6% coupon with semiannual interest payments. The bonds are currently priced at par. The effective

The newly issued bonds of the Waldorf Corp. offer a 6% coupon with semiannual interest payments. The bonds are currently priced at par. The effective annual rate provided by these bonds must be:

Equal to 3%.

Greater than 3% but less than 4%.

Equal to 6%.

Greater than 6% but less than 7%.

Equal to 12%.

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