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Bond Valuation: COUPON RATE A company wants to issue new 30-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds

Bond Valuation: COUPON RATE

A company wants to issue new 30-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make annual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?ABC Company wants to issue new 30-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make annual payments, and mature in 20 years.

What coupon rate should the company set on its new bonds if it wants them to sell at par?

--Please do not use excel sheet or financial apps/tools to solve the question as I am not learning through those methods (Please use manual formula)--

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1 1 (1 + i)" i Bond Value (V.) = PMT Maturity Value + (1 + i)

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