Nikita Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1, 000, and selling for $962. At this price, the bonds yield 8.5 percent. What must the coupon rate be on the bonds?
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Nikita Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1, 000, and selling for $962. At this price, the bonds yield 8.5 percent. What must the coupon rate be on the bonds?
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