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Chamberlain Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 9.6 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 9.6 percent coupon bonds on the market that sell for $1,000.00, 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 Multiple Choice 9.90% 9.30% 9.60% 4.80% 9.50%
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