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Chamberlain Company wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 8.4 percent coupon bonds on the market that
Chamberlain Company wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 8.4 percent coupon bonds on the market that sell for $1,079.75, make semiannual payments, and mature in 19 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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