What coupon rate should the company set on its new bonds

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1. Seether Co. wants to issue new 12-year bonds for some much-needed expansion projects. The company currently has 11.4 percent coupon bonds on the market that sell for $1,295.72, make semiannual payments, and mature in 12 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

2. You purchase a bond with an invoice price of $1,400. The bond has a coupon rate of 7.6 percent, and there are 5 months to the next semiannual coupon date. What is the clean price of the bond?

Reference no: EM131985321

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