Bond values and coupons

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Bond values and coupons [LO6.2] Eaglehawk Ltd is contemplating selling some 10-year bonds to raise funds for a planned expansion. Eaglehawk currently has an issue outstanding with an $8 annual coupon, paid semi- annually. These bonds currently sell for $93.49, a discount relative to their $100 face value, and they have 10 years remaining to maturity. What coupon rate must the new issue have if it is to sell at par when it is issued?

Reference no: EM132999456

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