Coupon rate with semiannual payments


Problem:

Treasury bonds paying a 6.75% coupon rate with semiannual payments currently sell at par value.

Required:

Question: What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?

Note: Explain all steps comprehensively.

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Finance Basics: Coupon rate with semiannual payments
Reference No:- TGS0894054

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