the answer says 2.8% interest rate. But if it is sold at premium, wouldnt the interest rate
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the answer says 2.8% interest rate. But if it is sold at premium, wouldnt the interest rate be higher than the market rate?
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Bonds Practice Problem III 4. Zippy Inc. sold 25 year bonds with a face value of $1,000,000 and a coupon rate of 3 percent. They received $ 1,075,000 for the bonds. The market interest rate for 25 year bonds was? (a) 3.5% (b) 7.5% (c) 2.8% (d) 3.0% I Bonds Practice Problem III 4. Zippy Inc. sold 25 year bonds with a face value of $1,000,000 and a coupon rate of 3 percent. They received $ 1,075,000 for the bonds. The market interest rate for 25 year bonds was? (a) 3.5% (b) 7.5% (c) 2.8% (d) 3.0% I
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