What coupon rate should the company set on its new bonds

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Reference no: EM131582347

GN Supply wants to issue new 10-year, $1,000 face value bonds at par. The company currently has 6.35 percent coupon bonds on the market that sell for $983.20, make semiannual interest payments, and mature in 10 years.

What coupon rate should the company set on its new bonds?

6.47 percent

6.37 percent

6.50 percent

6.58 percent

6.38 percent

Reference no: EM131582347

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