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A Company Releases a Five-Year Bond with a Face Value

Question 113

Multiple Choice

A company releases a five-year bond with a face value of $1000 and coupons paid semi-annually.If market interest rates imply a YTM of 6%,what should be the coupon rate offered if the bond is to trade at par?


A) 3%
B) 4%
C) 6%
D) 8%
E) 9%

Correct Answer:

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