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Compute what is the bond coupon rate

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Question 1: Given a $1000 face value corporate bond having a current price of $800, matures in 5 years. If interest is paid semi-annually and the bond is priced to yield 8% annually, what is the bond's coupon rate?

Option a) 3.03% Annually

Option b) 1.77% semi annually

Option c) 2.8% annually

Option d) 1.53% semi annually

Reference no: EM132543796

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