What is the annual coupon rate for a 1000 face value bond, Ask an Expert

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What is the annual coupon rate for a $1000 face value bond with two years until maturity and a price of $1,026.39, if the appropriate discount rate is 9% per year? (You may assume that the next coupon payment is due one year from now.)

Answer

7.0%

8.25%

9.0%

10.5%

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