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Market price of the bond

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Consider an 11-year, corporate bond with face value $1,000 that pays semi-annual coupon. With the nominal yield-to-maturity equal to 10%, the bond is selling at $802.5550. Find the coupon rate for this bond. Assume that the market is in equilibrium so that the fair value of the bond is equal to the market price of the bond.

Reference no: EM133056983

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