ABC has two financing alternatives. It can issue 20-year public debt at par with a 7% coupon

Question:

ABC has two financing alternatives. It can issue 20-year public debt at par with a 7% coupon in the domestic market. It can also issue 6% Eurobonds. There are NO issuance costs. Calculate APY for each alternative.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...