Gabriele Enterprises has bonds on the market making annual payments, with 13 years to maturity, a par value of $1,000, and selling for $780. At this price, the bonds yleld 9.2 percent. What must the coupon rate be on the bonds? Multiple Choice 7.99% 12.46% 9.20% 6.23% 6.33%

Gabriele Enterprises has bonds on the market making annual payments, with 13 years to maturity, a par value of $1,000, and selling for $780. At this price, the bonds yleld 9.2 percent. What must the coupon rate be on the bonds? Multiple Choice 7.99% 12.46% 9.20% 6.23% 6.33%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the...

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Question

Gabriele Enterprises has bonds on the market making annual payments, with 13 years to
maturity, a par value of $1,000, and selling for $780. At this price, the bonds yield 9.2
percent. What must the coupon rate be on the bonds?
Multiple Cholce
7.99%
12.46%
9.20%
6.23%
6.33%

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