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A Bond with 14 Years to Maturity Is Selling for $1070

Question 86

Multiple Choice

A bond with 14 years to maturity is selling for $1070 and has a yield to maturity of 10.06%. If this bond pays its coupon payments semi-annually and par value is $1,000, what is the bond's annual coupon rate?


A) 5.50%
B) 8.19%
C) 9.57%
D) 11.00%

Correct Answer:

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