Question
BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 9.4 percent coupon bonds on the market that
BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 9.4 percent coupon bonds on the market that sell for $1,134, make semiannual payments, have a $1,000 par value, and mature in 18 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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Handbook Of Energy Finance Theories Practices And Simulations
Authors: Stéphane Goutte, Duc Khuong Nguyen
1st Edition
9813278374, 978-9813278370
