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What coupon rate should the company set on its new bonds

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Reference no: EM132933832

Problem - Bond Yields - Airbutus Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8% coupon bonds on the market that sell for $930, 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: EM132933832

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