Question: 5. Steve is considering buying a bond with a current yield of 9% and selling for $900. Assuming the bond pays an annual coupon, what

5.

  1. Steve is considering buying a bond with a current yield of 9% and selling for $900. Assuming the bond pays an annual coupon, what is the coupon rate of this bond?

    a.

    6.2%
    b.

    7.0%
    c.

    8.0%
    d.

    8.1%
    e.

    9.0%

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