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A corporation had a face value of $1,000 of a 30 year fixed coupon bond 10 years ago with a coupon rate of 4%. Currently
A corporation had a face value of $1,000 of a 30 year fixed coupon bond 10 years ago with a coupon rate of 4%. Currently this bond is trading at $960 with a current yield of 3.65% and yield to maturity of 4.00%. Since this Corp needs funding for a new project it intends to issue a new 10-year bond and would like to price it at par when the new bond is issued. What should be the coupon rate of this new bond in order for it to be priced at par?
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