Question: BC Builders, Inc. has outstanding bond issue with a face value of $1,000 and a market price of $948 and 15 years left to maturity.

BC Builders, Inc. has outstanding bond issue with a face value of $1,000 and a market price of $948 and 15 years left to maturity. The bonds pay interest annually and have an annual yield to maturity of 5 percent. What is the annual coupon rate?

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