7. Coupon Rate. General Matter's outstanding bond issue has a coupon rate of 10% and a current...

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7. Coupon Rate. General Matter's outstanding bond issue has a coupon rate of 10% and a current yield of 9.6%, and it sells at a yield to maturity of 9.25%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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