What coupon rate should the company set

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Bobby Oreo Inc. issued 20-year bonds 2 years ago at a coupon rate of 9.2%. The bonds make semi-annual payments. If the bonds currently sell for 106.8% of par value, what is the YTM? YMT= What is the effective yield on Bobby's bond? Wayne Gatsby issued 20-year bonds with 14.5 years to maturity, a YTM of 6.1%, and a current price of $1,038. The bonds make semi-annual payments. What must the coupon rate be on these bonds? OS Inc. wants to issue brand new 20-year bonds to raise funds for some much needed expansion projects. The company currently has 8% coupon bonds on the market that are selling for $930, making semi-annual payments, and maturing in 5 years. What coupon rate should the company set on its new bonds if it wants them to sell at par today?

Reference no: EM131478454

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