What coupon rate should the company set on new bonds

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Reference no: EM132771992

Problem 1: A company would like to issue new 20-year bond. The company currently has a 6 % coupon bonds on the market that sell for 108.3% of its $1,000 par value, 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: EM132771992

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