Coupon Rate. General Matters outstanding bond issue has a coupon rate of 10 percent and a current

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Coupon Rate. General Matter’s outstanding bond issue has a coupon rate of 10 percent and a current yield of 9.6 percent, and it sells at a yield to maturity of 9.25 percent. 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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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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