The Boston Clothing Co. has a $1,000 face value bond outstanding with a market price of $998. The bond pays interest annually, matures in 15 years, and has a yield to maturity of 7.9. percent. What is the coupon rate?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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The Boston Clothing Co. has a $1,000
face value bond outstanding with a
market price of $998. The bond pays
interest annually, matures in 15 years,
and has a yield to maturity of 7.9.
percent. What is the coupon rate?
Transcribed Image Text:The Boston Clothing Co. has a $1,000 face value bond outstanding with a market price of $998. The bond pays interest annually, matures in 15 years, and has a yield to maturity of 7.9. percent. What is the coupon rate?
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