Issue original issue discount

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Reference no: EM131592520

Pandora Media places to issue original issue discount (OID) bonds with a 20 year, $1,000 par value, and initial yield to maturity of 8%. SInce these bonds are issued below par, the total yield will come from both annual coupon payments and appreciation. If the bonds are offered at a discounted price of $930, what is their nominal coupon rate? That is. at this price, what coupon rate will result in yield to maturity of 8%. Please round your answer two decimal places.

Reference no: EM131592520

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