Problem
Contributed by Meenakshi Sundaram, Tennessee Tech University
At what coupon interest rate will a $20,000 bond yield a nominal 12% interest compounded quarterly if the purchaser pays $18,000 and the bond becomes due in 20 years? Assume the bond interest is payable quarterly.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.