Question
BDJ Co. wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 9.2 percent coupon bonds on the market that
BDJ Co. wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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Healthcare Finance: An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
6th Edition
1567937411, 978-1567937411
