Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payment 10.5...

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Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payment 10.5 years to maturity, and a market price of $1,045.37. At this price, the bonds yield 6.4 percent. What must be the coupon rate on these bonds? Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payment 10.5 years to maturity, and a market price of $1,045.37. At this price, the bonds yield 6.4 percent. What must be the coupon rate on these bonds?

Answer rating: 100% (QA)

To find the coupon rate of the bondswe can use the following formula for the present value of a bond ... View the full answer