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

question 59

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 simple annual yield is 14 percent. Given this information, the annual coupon rate on the bond is: (Round the answer to the nearest whole number.)

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

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