The Road House would like to issue some semiannual coupon bonds at par. Comparable bonds have a current yield of 8.16 percent, an effective annual yield of 8.68 percent, and a yield to maturity of 8.50 percent. What coupon rate should The Road House set on its bonds?
A) 8.00 percent
B) 8.16 percent
C) 8.50 percent
D) 8.68 percent
E) 9.00 percent
Correct Answer:
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