Corp has bonds on the market with 16yrs maturity, a YTM% of10.5, and a price=$943. The...

Corp has bonds on the market with 16yrs maturity, a YTM% of10.5, and a price=$943. The bonds make semiannual payments. The face value is $1,000.

Required:

What's the coupon rate? Hint: Solve for the semiannual payment (PMT). Multiply it by 2 to make it annual. Divide the result by the face value to get the percentage coupon rate. This is exactly like the book, video and practice examples. (Do not round intermediate calculations. Round your whole percentage to 2 decimal places (e.g., 8.16).)

Coupon rate

%

Expert Solution

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jeff jeffy answered 1 year ago

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