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BDJ Co. wants to issue new 25-year bonds for some muchneeded expansion projects. The company currently has 5.6 percent coupon bonds on the market that

BDJ Co. wants to issue new 25-year bonds for some muchneeded

expansion projects. The company currently has 5.6 percent coupon

bonds on the market that sell for $1,074, make semiannual payments, have a

$1,000 par value, and mature in 25 years. What coupon rate should the

company set on its new bonds if it wants them to sell at par?

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