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Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8.6 percent coupon bonds on the market that

Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8.6 percent coupon bonds on the market that sell for $1,131.74, make semiannual payments, and mature in 16 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.

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