Coupon Rate
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Question:
Large Industries bonds sell for $1,065.15. The bond life is 9 years, and the yield to maturity is 7 percent. What must be the coupon rate on the bonds?
Please show work.
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Solution Summary
The solution explains how to calculate the coupon rate on a bond.
Solution Preview
The YTM is the discounting rate that will make the present value of interest and principal equal to the price today.
We are given everything except the coupon rate.
Use the PV formula in excel and ...
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