Problem:
Ashes Divide Corporation has bonds on the market with 18 years to maturity, a YTM of 9.0 percent, and a current price of $1,326.50. The bonds make semiannual payments.
Required:
Question: What must the coupon rate be on these bonds?
- 9.57%
- 19.19%
- 12.80%
- 12.70%
- 25.46%
Note: Please show the work not just the answer.