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    Calculating coupon rate in the given case

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    Ashes Divide Corporation has bonds on the market with 13.5 years to maturity, a YTM of 9.4 percent, and a current price of $1,075.6. The bonds make semiannual payments. The coupon rate on these bonds must be ??? percent.

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    https://brainmass.com/business/business-math/calculating-coupon-rate-case-407023

    Solution Preview

    Face Value of bond=P=$1000
    Number of coupon payments left=n=13.5*2=27
    YTM=r=9.4% /2=4.7% semi annual
    Coupon ...

    Solution Summary

    The solution calculates the coupon rate in the given case.

    $2.19