What is the coupon amount if the bondsells at par

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Question 1: A company issues a $1,000 perpetual bond. The current rate is 6%. Next period, the ratewill change to either 4% or 10%, with equal probability. The bond is callable at the endof the first year only, for a price of $1,117.90. What is the coupon amount, if the bondsells at par?

Reference no: EM132899971

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