Lanker Enterprises has bonds on the market making Monthly payments, with 16 years to maturity, a par value of $1,000, and a price of $1154.49. At his price, the bonds yield 12 percent. What must the coupon rate be on the bonds? Select one: a.15.513% b.14.176% c.14.586% d.15.833%

Lanker Enterprises has bonds on the market making Monthly payments, with 16 years to maturity, a par value of $1,000, and a price of $1154.49. At his price, the bonds yield 12 percent. What must the coupon rate be on the bonds? Select one: a.15.513% b.14.176% c.14.586% d.15.833%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Lanker Enterprises has bonds on the market making Monthly payments, with 16 years to maturity, a par value of $1,000, and a price of $1154.49. At his price, the bonds
yield 12 percent. What must the coupon rate be on the bonds?
Select one:
a.15.513%
b.14.176%
c.14.586%
d.15.833%

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