The coupon rate that is shown on the face of a bond:
A) can be multiplied by the par value of the bond to calculate the semiannual interest payment.
B) should be used as the discount rate when calculating the present value of the future cash flows from the bond.
C) is normally close to the interest rate that a company will have to pay when the bonds are issued.
D) Both a. and c. are correct.
E) All of the above are correct.
C
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