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Annual coupon rate on the bond

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A 20 year bond pays semi-annual coupons. The face amount of the bond is $1,000 and is the same as the redemption amount. The bond is sold at a market price of $975 and at that price the bond provides a yield to maturity of 0.08 nominal compounded semi-annually. What is the annual coupon rate on the bond?

Reference no: EM133205287

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