Your company currently has $1000 par, 5.5% coupon bonds with 10 years to maturity and a price
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Your company currently has $1000 par, 5.5% coupon bonds with 10 years to maturity and a price of $1080. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months.
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To determine the coupon rate needed for the new 10year coupon bonds to be issued at par we can use t...View the full answer
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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