The Los Angeles Airport Authority has bonds on the market with 10.5 years to maturity, a yield to maturity of 8%, and a current price of $925. The bonds make semi-annual payments. What must the coupon rate be on LA Airport’s bonds?
FORMAT TO 4 DECIMAL PLACES.
A. 11.88%
B. 6.93%
C. 10.50%
D. 3.47%
E. 9.13%