Chamberlain Co. wants to issue new 11-year bonds for some much-needed expansion projects. The company currently has 10.4 percent coupon bonds on the market that sell for $1,293.90, make semiannual payments, and mature in 11 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.

1. 6.90%
2. 6.60%
3. 3.30%
4. 6.50%
5. 6.30%