Approximate coupon rate on the outstanding bond

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Reference no: EM13829028

The current required rate of return on a bond issued by Who LTD is 11 percent. "Who" has a bond issue outstanding that pays interest semi annually, is selling for $845 and matures in 8 years. What is the approximate coupon rate on the outstanding bond?

a. 10.68%

b. 4.00%

c. 6.05%

d. 8.00%

Reference no: EM13829028

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