Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 10.6 percent coupon bonds on the market that sell for $954.83, make semiannual payments, and mature in 17 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

• 10.90%

• 11.10%

• 11.20%

• 11.50%

• 5.60%