Simple interest rate on new bonds


Tapley corporations 14 percent coupon rate, semiannual payment $1000 par value bonds mature in 30 years. The bonds sell at a price of $1353.54 and their yield curve is flat. Assuming that interest rates in the general economy are expected to remain at their level, what is the best estimate of Tapleys simple interest rate on new bonds?

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Finance Basics: Simple interest rate on new bonds
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