Question: Can you please provide the explanation, formula and correct answer for the problem above? What is the interest rate of the following bonds? Assume the

Can you please provide the explanation, formula and correct answer for

Can you please provide the explanation, formula and correct answer for the problem above?

What is the interest rate of the following bonds? Assume the bonds are priced in equilibrium. Par value: $1,000 Years to maturity: 10 years Coupon rate: 8% paid semiannually Current market price: $960 Select one: a. 8.61% b. 9.43% C. 9% d. 8.22%

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