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Marshall Industries Has a Bond Outstanding That Has a $1,000

Question 66

Multiple Choice

Marshall Industries has a bond outstanding that has a $1,000 par value and a market price of $1,322. The bond has 25 years remaining to maturity. Assuming an annual market interest rate of 8% and that the bond pays interest semiannually, calculate the ANNUAL coupon rate on the bond. (Round to nearest whole percentage)


A) 5%
B) 7%
C) 9%
D) 11%
E) 13%

Correct Answer:

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