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

question 48

Multiple Choice

A company releases a five-year bond with a face value of $1 000 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)4%
• B)8%
• C)6%
• D)3%

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