What must the coupon rate be on these bonds


Problem:

Ponzi Corporation has bonds on the market with 20.5 years to maturity, a YTM of 6.70 percent, and a current price of $1,044. The bonds make semiannual payments.

Required:

What must the coupon rate be on these bonds?

Note: Please explain comprehensively and give step by step solution.

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Finance Basics: What must the coupon rate be on these bonds
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