Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 11.4 percent coupon bonds on the market that sell for $1,419.52, 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.

Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 11.4 percent coupon bonds on the market that sell for $1,419.52, 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. Multiple Choice 6.90% 7.30% 7.00% 3.50% 6.70%