What coupon rate should the dairy delight set on its bonds

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Reference no: EM131077846

The Dairy Delight wants to raise $1.0 million by selling some coupon bonds at par. Comparable bonds in the market have a 6.5 percent annual coupon, 15 years to maturity, and are selling at 98 percent of par. What coupon rate should The Dairy Delight set on its bonds?

Reference no: EM131077846

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