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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?

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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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