Problem

(L.OBJ. 6) Determining bond interest rates [5 min] A 5%, 10-year bond was issued at a p...

(L.OBJ. 6) Determining bond interest rates [5 min]

A 5%, 10-year bond was issued at a price of 94.

Requirement

1. Was the market interest rate at the date of issuance closest to 4%, 5%, or 6%? Explain.

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