Whitts BBQ would like to issue some 10-year, semiannual coupon bonds at par. Comparable bonds have a current yield of 9.16 percent, an effective annual yield of 9.68 percent, and a yield to maturity of 9.50 percent. What coupon rate should Whitts BBQ set on its bonds?
A. 9.00 percent
B. 9.16 percent
C. 9.50 percent
D. 9.68 percent
E. 10.00 percent
Answer: C. 9.50 percent
Business
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