Market enterprises would like to issue bonds and needs to, Ask an Expert

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Market Enterprises would like to issue bonds and needs to determine the approximate rate they would need to pay investors. A firm with similar risk recently issued bonds with the following current features a 5% coupon rate, 10 years until maturity, and a current price of $1,150. At what rate would Market Enterprises expect to issue their bonds, assuming annual interest payments?

A. 3.2%

B. 5.9%

C. 5%

D. 4.8%

Please explain solution in detail and what formula (if any) you are using to find answer.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91543771

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