Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000) . The nominal 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. What is the annual coupon interest rate?
A) 8%
B) 6%
C) 4%
D) 2%
E) 0%
Correct Answer:
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