Coupon rate be on these bonds


Problem:

Ashes Divide Corporation has bonds on the market with 18 years to maturity, a YTM of 9.0 percent, and a current price of $1,326.50. The bonds make semiannual payments.

Required:

Question: What must the coupon rate be on these bonds?

  • 9.57%
  • 19.19%
  • 12.80%
  • 12.70%
  • 25.46%

Note: Please show the work not just the answer.

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Accounting Basics: Coupon rate be on these bonds
Reference No:- TGS0884151

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