Solved

The Current Required Rate of Return on a Bond Issued

Question 91

Multiple Choice

The current required rate of return on a bond issued by Who LTD is 11 percent. "Who" has a bond issue outstanding that pays interest semiannually, is selling for $845, and matures in 8 years. What is the approximate coupon rate on the outstanding bond?


A) 4.00%
B) 8.00%
C) 10.68%
D) 6.05%

Correct Answer:

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