Davis & Davis issued $1,000 face value bonds at 102.The bonds pay 12% interest annually and mature in 30 years.The market rate of interest is (round to the nearest hundredth of a percent)

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The bonds were issued at 102, meaning they were sold for 102% of their face value, indicating a premium. The market rate of interest is lower than the coupon rate of 12%, which is why the bonds were sold at a premium. Using financial calculations, the market rate is approximately 11.71%.

Davis & Davis Issued $1,000 Face Value Bonds at 102