What the nearest approxi­mation to the current market rate

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Question 1: X Co. has outstanding 10,000 bonds with a par value of $1,000 each with a stated interest rate of 12%. The bonds mature in 30 years. Currently the bonds are quoted on the security exchanges at 120. The nearest approxi­mation to the current market rate of interest is:

Option a. 10.0%

Option b. 12.0%

Option c. 20.0%

Option d. 14.0%

Reference no: EM132570011

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