Best estimate of simple interest rate on new bonds


Tapley Corporation's 14 percent coupon rate, semiannual payment, $1,000 par value bonds mature in 30 years. The bonds sell at a price of $1,353.54, and their yield curve is flat. Assuming that interest rates in the general economy are expected to remain at their current level, what is the best estimate of Tapley's simple interest rate on new bonds?

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Finance Basics: Best estimate of simple interest rate on new bonds
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