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Moussawi Ltd's outstanding bonds have a $1,000 par value and they will mature in 5 years. Their yield to maturity is 9% p.a. with semiannual compounding, and the current market price is $ 853.61. What is the bonds annual coupon rate?

Moussawi Ltd's outstanding bonds have a $1,000 par value and they will mature in 5 years. Their yield to maturity is 9% p.a. with semiannual compounding, and the current market price is $ 853.61. What is the bonds annual coupon rate?

Essentials Of Investments
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
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Moussawi Ltd's outstanding bonds have a $1,000 par value and they will mature in 5 years. Their yield to maturity is 9% p.a. with semiannual compounding, and the current market price is $ 853.61. What is the bonds annual coupon rate?
Transcribed Image Text:Moussawi Ltd's outstanding bonds have a $1,000 par value and they will mature in 5 years. Their yield to maturity is 9% p.a. with semiannual compounding, and the current market price is $ 853.61. What is the bonds annual coupon rate?
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