Tanger Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 10 years. The annual yield to maturity is 8%. However coupon is paid semiannually, and they sell at a price of $1125. What is the bond's annual coupon interest rate? 7.08% 4.37% 9.84% 8.75% 4.92%

Tanger Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 10 years. The annual yield to maturity is 8%. However coupon is paid semiannually, and they sell at a price of $1125. What is the bond's annual coupon interest rate? 7.08% 4.37% 9.84% 8.75% 4.92%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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Tanger Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 10 years. The annual yield to maturity is
8%. However coupon is paid semiannually, and they sell at a price of $1125. What is the bond's annual coupon interest
rate?
7.08%
4.37%
9.84%
8.75%
4.92%

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