Question
Chamberlain Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 8.4 percent coupon bonds on the market that
Chamberlain Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 8.4 percent coupon bonds on the market that sell for $891.16, make semiannual payments, and mature in 15 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.
- 9.70%
- 9.80%
- 4.90%
- 10.10%
- 9.50%
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
