Cold Boxes Corporation Has 100 Bonds Outstanding with a Maturity

question 26

Multiple Choice

Cold Boxes Corporation has 100 bonds outstanding with a maturity value of $1,000. The required rate of return on these bonds is currently 10 percent, and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. Which of the following is the annual coupon interest rate?

• A)8%
• B)6%
• C)4%
• D)2%
• E)0%

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