Bond nominal coupon interest rate


O'brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate?

A. 6.27%

B. 6.60%

C. 6.95%

D. 7.32%

E. 7.70%

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Finance Basics: Bond nominal coupon interest rate
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