Question
Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 4 percent coupon bonds on the market that
Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 4 percent coupon bonds on the market that sell for $941, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
