Business, 01.07.2021 18:20, rbrummitt1522

Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bonds on the market that sell for $959, make semiannual payments, and mature in 16 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?

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Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company...