General Matter 's outstanding bond issue has a coupon rate of 7 and a current yield of 7 6 , and it sells at a yield to maturity of 9 25 The firm wishes to issue additional bonds to the public at par value What coupon rate must the new bonds offer in order to sell at par ...

When the bond is selling at par its yield ...

General Matter's outstanding bond issue has a coupon rate of 7% and a current yield of 7.6%,

Question:

General Matter's outstanding bond issue has a rate of 7% and a current yield of 7.6%, and it sells at a yield to of 9.25%. The firm wishes to issue additional bonds to the public at par value. What rate must the new bonds offer in order to sell at par?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...