What is the yield to maturity-what is the annual coupon rate

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A firm has a bond issue with a coupon rate of 6.75% that matures in 12 years. The bonds have a par value of $1,000 and a current price of $935. What is the yield to maturity?

a) 3.69%

b) 7.58%

c) 5.93%

d) 14.67%

A firm has bonds with 17 years remaining to maturity, a par value of $1,000, and selling for $1,275.50. At this price, the bonds yield to maturity is 5.83%. What is the annual coupon rate?

a) 7.71%

b) 3.85%

c) 10.50%

d) 8.41%

Reference no: EM131552336

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