What coupon rate should the company set on its new bonds

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Question - Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 7.4 percent coupon bonds on the market that sell for $865.69, make semi-annual payments, and mature in 16 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.

Reference no: EM133168565

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