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A Bond with 23 Years to Maturity Is Selling for $991

Question 46

Multiple Choice

A bond with 23 years to maturity is selling for $991 and has a yield to maturity of 8.12 percent. If this bond pays its coupon payments semiannually and par value is $1,000, what is the bond's annual coupon rate?


A) 7.45 percent
B) 8.03 percent
C) 9.39 percent
D) 10.82 percent

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