Bond issued-what is the quoted annualized coupon rate

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Reference no: EM13846278

You are considering buying a bond issued by General Motors with exactly 5.5 years remaining to maturity that just paid a coupon yesterday. It rained on your paper this morning so you do not know what the coupon rate is. However you are able to see that the quoted price is listed as $105-20 and the annualized yield is 7%, with semi-annual compounding. If the coupon is paid semi-annually, what is the quoted annualized coupon rate? Show your work.

Reference no: EM13846278

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