Chang Construction wants to issue new 12-year bonds to finance a new trucking fleet. The company currently has 8.2 percent coupon bonds on the market that sell for $1,113.60, make semiannual payments, and mature in 12 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

• 3.40%

• 6.50%

• 6.70%

• 6.80%

• 7.10%