What the bond effective interest rate is nearest to

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Problem 1: ABC Co.'s bonds currently sell for ?116,500. They mature in 15 years and pay an annual interest of ?9,500. They have a face value of ?100,000. The bond's effective interest rate is nearest to

a. 6.20%

b. 6.53%

c. 6.87%

d. 7.24%

e. 7.63%

Reference no: EM132931495

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