Explain coupon rate with semi-annual coupon payments, Operation Management

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Genny, Inc. bonds have a 9% coupon rate with semi-annual coupon payments. They have 9 1/2 years to maturity and a par value of $1,000. Compute the value of Genny's bonds if investors' required rate of return is 7%.

a. $1,135.47

b. $973.33

c. $1,137.10

d. $950.00


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