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As a CFO, you plan to issue new bonds to finance your company expansion plans. You have identified a company of similar risk with an
As a CFO, you plan to issue new bonds to finance your company expansion plans. You have identified a company of similar risk with an outstanding bond issue that has an percent coupon rate having a maturity of years. That firm's bonds are currently selling for $ 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?
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