What must the coupon rate be on orage bonds

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1. LibreOffice, Inc. wants to raise $12 million dollars in debt financing. It wants to offer a $1,000 face value, 9.9 percent coupon bond with annual payments and 11 years to maturity. The yield to maturity on similar bonds out in the marketplace is 8.9 percent. How many bonds must the firm issue in order to raise the desired amount of funding?

2. Orage Enterprises has bonds on the market making annual payments, with 10 years to maturity, face value of $1,000, and selling for $833.7. At this price, the bonds yield 7.4 percent. What must the coupon rate be on Orage’s bonds? (Enter rate in percents, not in decimals.)

Reference no: EM131990092

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