Bonds for some much-needed expansion projects

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Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5 percent coupon bonds on the market that sell for $1094, make semiannual payments, and mature in 20 years.

What coupon rate should the company set on its new bonds if it wants them to sell at par?

Reference no: EM131429081

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