Bond Yields Seether plc wants to issue new 20-year bonds for some much-needed expansion projects. The company
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Bond Yields Seether plc wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8 per cent coupon bonds on the market that sell for £93,000 with a par value of £100,000, make semi-annual payments, and mature in 20 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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