The Current Price of a 10-Year, $1,000 Par Value Bond

question 11

Multiple Choice

The current price of a 10-year, $1,000 par value bond is $1,158.91. Interest on this bond is paid every six months, and the nominal annual yield is 14 percent. Given these facts, what is the annual coupon rate on this bond?

• A) 10%
• B) 12%
• C) 14%
• D) 17%
• E) 21%

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