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What coupon rate should the company set on its new bonds

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Question - BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 9.4 percent coupon bonds on the market that sell for $1,134, 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?

Reference no: EM131728039

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