Question: 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

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?

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