Question
A company wants to issue new 20-year bonds to raise capital. Currently, the company has 6% coupon bonds on the market that make semi-annual payments,
A company wants to issue new 20-year bonds to raise capital. Currently, the company has 6% coupon bonds on the market that make semi-annual payments, have a 7% YTM, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par value?
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Handbook Of Consumer Finance Research
Authors: Jing Jian Xiao
2nd Edition
3319288857, 978-3319288857
