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AB Builders Has 15-Year Bonds Outstanding with a Face Value

Question 95

Multiple Choice

AB Builders has 15-year bonds outstanding with a face value of $1,000 and a market price of $974.The bonds pay interest annually and have a yield to maturity of 4.03 percent.What is the coupon rate?


A) 3.80 percent
B) 4.20 percent
C) 4.25 percent
D) 3.75 percent
E) 3.95 percent

Correct Answer:

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