Question: MBA Corp. plans to issue 2 0 - year bonds paying semiannual coupons. The yield to maturity on other similar bonds is 9 % .

MBA Corp. plans to issue 20-year bonds paying semiannual coupons. The yield to maturity on other similar bonds is 9%. If MBA Corp. wants to sell the bonds at $1,100 a pice, what should be the coupon rate?

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