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Evaluate what must the coupon rate be on the bonds

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Reference no: EM132678006

Problem 1: Gabriele Enterprises has bonds on the market making annual payments, with 15 years to maturity, a par value of $1,000, and selling for $830. At this price, the bonds yield 9.4 percent. What must the coupon rate be on the bonds?

Multiple Choice

Option 1: -7.34%

Option 2: -8.72%

Option 3: -9.40%

Option 4: -7.24%

Option 5: -14.48%

Reference no: EM132678006

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