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BDJ Co. wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 8.7 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 8.7 percent coupon bonds on the market that sell for $1,127, 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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