O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years.  Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,125.  What is the bond's nominal coupon interest rate? Question 2 options:   11.07%   12.02%   9.17%   10.54%   10.96%

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.