Coupon rate should the company set on its new bonds

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Reference no: EM131869292

BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 10.4 percent coupon bonds on the market that sell for $1,144, make semiannual payments, have a $1,000 par value, and mature in 18 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Reference no: EM131869292

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