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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