Business, 09.02.2022 07:20, noeminm105
BDJ Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 9 percent coupon bonds on the market that sell for $1,130, make semiannual payments, have a par value of $1,000, and mature in 20 years.
Required:
What coupon rate should the company set on its new bonds if it wants them to sell at par?
Answers: 2
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