A Five-Year Bond Is Currently Selling for $930

A five-year bond is currently selling for $930.11. It has a face value of $1,000 and a market yield of 8 percent. Coupons are paid semi-annually. The coupon rate is closest to:

A) 4.12%.
B) 6.25%.
C) 6.28%.
D) 7.48%.

Correct Answer:

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