At what coupon interest rate will a bond yield, Microeconomics

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At what coupon interest rate will a bond yield

Problem

Contributed by Meenakshi Sundaram, Tennessee Tech University

At what coupon interest rate will a $20,000 bond yield a nominal 12% interest compounded quarterly if the purchaser pays $18,000 and the bond becomes due in 20 years? Assume the bond interest is payable quarterly.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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