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Al Safa Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Al Safa Corporation has

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Al Safa Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Al Safa Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for $1,091.96. If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par? a. 5.78% O b. 6.50% C. 6.71% O d. 6.88%

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