What coupon rate should the company set on its new bonds

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Chamberlain Co. wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 9 percent coupon bonds on the market that sell for $1,095, 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?

Reference no: EM13881315

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