Question

McConnell Corporation has bonds on the market with 19 years to maturity, a YTM of 7.4...

McConnell Corporation has bonds on the market with 19 years to maturity, a YTM of 7.4 percent, a par value of $1,000, and a current price of $1,136.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?

  1. 15.42%
  2. 8.85%
  3. 7.70%
  4. 17.52%
  5. 8.75%

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