Chamberlain Co. wants to issue new 12-year bonds for some much-needed expansion projects. The company currently has 9.0 percent coupon bonds on the market that sell for $880.50, make semiannual payments, and mature in 12 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.

Multiple Choice

• 11.10%

• 10.70%

• 5.40%

• 10.50%

• 10.80%