Bdj co wants to issue new 25-year bonds for some

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BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8 percent coupon bonds on the market that sell for $1,125, make semiannual payments, and mature in 20 years.

Required:

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

Reference no: EM13619983

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