Same yield rate to the investor for the five-year period

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Reference no: EM131913335

A five-year $2,000 floating-rate bond with annual coupons had a $2,125 redemption amount and was sold at its face value. The coupon rates were 7%. 6.4%, 5.8%, 6.2%, and 6.6%, successively. What level coupon rate would result in the same yield rate to the investor for the five-year period?

Reference no: EM131913335

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