Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time to maturity: 20 years Yield to maturity: 8 percent Current market price: $1,304.28 Quarterly payments What is the coupon rate? A. 10.12% B. 11.06% C. 14.38% D. 13.25%

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Chapter12: Investing In Stocks And Bonds
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Problem 9FPE: Which of these two bonds offers the highest current yield? Which one has the highest yield to...
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Innovative Financial Inc. issues a bond with the following information:

  • Par: $1,000
  • Time to maturity: 20 years
  • Yield to maturity: 8 percent
  • Current market price: $1,304.28
  • Quarterly payments

What is the coupon rate?

  A.

10.12%

  B.

11.06%

  C.

14.38%

  D.

13.25%

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