What must the coupon rate of the new bonds be

Reference no: EM13295680

A company wants to issue new 10-year bonds to finance its expansion plans. Currently the company has 9 percent semiannual bonds selling for $1,067.95 that mature 10 years from now. What must the coupon rate of the new bonds be in order for the issue to sell at par if interest is paid semiannually?

Reference no: EM13295680

Questions Cloud

How much energy is dissipated in the block during the impact : A 20.0 gram bullet is shot horizontally into a 2.00 kg block and quickly becomes imbedded in the block. How much energy is dissipated in the block during the impact

An unfavorable verdict : a. As a result of uninsured accidents during the year, personal injury suits for $350,000 and $60,000 have been filed against the company. It is the judgment of XYZ Company's legal counsel that an unfavorable outcome is unlikely in the $60,000 ..

What is one standard deviation : A project's coefficient of variation is 0.55. The project has a positive coefficient of correlation of 0.20. The expected value is $1,200. What is one standard deviation?

Find line voltage at the source with a balanced 3-phase load : A balanced 3-phase load takes 5.4 kW at 0.6 lagging power factor. If this load is connected through lines having 2 ohms resistance and 2ohms inductive reactance. Find the line voltage at the source. The line voltage at the load is 208 volts.

What must the coupon rate of the new bonds be : What must the coupon rate of the new bonds be in order for the issue to sell at par if interest is paid semiannually?

Regalia fashions has an incentive compensation plan : Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 8% of the division's net income. Division income in 2013 before the bonus and income tax was $245,000. The tax rate is 30%. Calculate..

What will the company dividend be in six years : The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3% annually. The last dividend it paid was $0.90 a share. What will the company's dividend be in six years?

Find out effect of load capacitance a coaxial lead is used : In a piezo electric accelrometer circuit which is being used to find out the effect of load capacitance a coaxial lead is used instead of a normal 'unshielded' wire, why is a coaxial lead used

A positive or negative event : If you owned stock in a company and you heard the company was about to buy back its own stock (Treasury Stock), would you view this as a positive or negative event

User Account

All Pages