Assume a corporation issues 5-year bonds with a stated rate of 8%, when their market rate of interest is 9%. A year after the bonds are issued the company's market rate of interest falls to 6.5% and stays there for the next 4 years. If the company holds the bonds until maturity, what is the interest rate the company has paid over the life of the bonds?

That's an interesting little trick question. The market rate is what the bonds are worth out in the market, for a similar investment. But they aren't paying their worth. They're paying 8%. :-) (It doesn't mention rate yielded, or even interest expense recorded... it just says the rate paid.)