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AT&T 10-Year, $1,000 Par Value Bond Is Selling at $1,158

Question 163

Multiple Choice

AT&T 10-year, $1,000 par value bond is selling at $1,158.91. Interest on this bond is paid semiannually. If the annual yield to maturity is 14%, what is the annual coupon rate of the AT&T bond?


A) 8.5%
B) 15%
C) 17%
D) 16%

Correct Answer:

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