Chamberlain Company wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 11.8 percent coupon bonds on the market that sell for $1,274.53, 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.

Multiple Choice

4.40%

9.10%

8.70%

8.80%

8.50%