Chamberlain Company wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 7.2 percent coupon bonds on the market that sell for $906.75, make semiannual payments, and mature in 18 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

8.10%

8.20%

8.50%

7.90%

4.10%