McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a current price of $1,326.50. The bonds make semiannual payments. What must the coupon rate be on these bonds

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals