What coupon rate should the company set

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Reference no: EM131287852 , Length: 1

Bond Yields Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects.

The company currently has 7 percent coupon bonds on the market that sell for $1,083, 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: EM131287852

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