D&G Enterprises issues bonds with a $1,000 face value that make coupon payments of $30 every 3 months. What is the coupon rate?

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D&G Enterprises issues bonds with a $1,000 face value that make coupon payments of $30 every 3 months. What is the coupon rate?

  1. A) 30%
  2. B) 00%
  3. C) 00%
  4. D) 00%
  5. E) 00%
0

Answer: D

Response: coupon rate = ($30 x 4) / 1,000 = 12%

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