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The ten year Government of Canada bond has a 5.5% coupon, semi-annual, and is price at 102.71. Investment bankers have advised you that your firm
The ten year Government of Canada bond has a 5.5% coupon, semi-annual, and is price at 102.71. Investment bankers have advised you that your firm can successfully issue a ten year bond as long as its yield is at least 1.75% higher than the yield on comparable Canada bonds. What will the coupon be on your bond if it is issued at par?
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