A Company Releases a Five-Year Bond with a Face Value

question 113

Multiple Choice

A company releases a five-year bond with a face value of $1000 and coupons paid semi-annually.If market interest rates imply a YTM of 6%,what should be the coupon rate offered if the bond is to trade at par?

• A)3%
• B)4%
• C)6%
• D)8%
• E)9%

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