What is best estimate of lloyds nominal interest rate

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Reference no: EM131375667

Lloyd Corporation's 14 percent coupon rate, semiannual payment, $1,000 par value bonds that mature in 30 years are callable 5 years from now at a price of $1,050.

The bonds sell at a price of $1,353.54, and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of Lloyd's nominal interest rate on new bonds?

Reference no: EM131375667

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