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DMA Corporation has bonds on the market with 20.5 years to maturity, a YTM of 6.7...

DMA Corporation has bonds on the market with 20.5 years to maturity, a YTM of 6.7 percent, and a current price of $1,044. The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %

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Answer #1

YEILD = 6.700% RATE = YIELD/2 = 3.35% YEARS TO MATURITY 20.5 NPER 41.0 (years to maturity x 2) FACE VALUE $1,000.00 PRICE = P

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