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Compute what coupon rate should company set on new bonds

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Reference no: EM132511909

OPM, Inc. wants to issue new 30-year bonds for a new 5 million expansion projects. The company currently has 7.5 percent coupon bonds on the market that sell for $965, make semiannual payments, and mature in 30 years.

Question 1: What coupon rate should the company set on its new bonds if it wants them to sell at par?

Reference no: EM132511909

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