16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must the coupon rate be on the bonds? A. 8.05% В. 10% C. 7.5% D. 6%

16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must the coupon rate be on the bonds? A. 8.05% В. 10% C. 7.5% D. 6%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and
selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must
the coupon rate be on the bonds?
A.
8.05%
B.
10%
C.
7.5%
D.
6%

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