Question
Company wants to issue 8 year bond. Currently company has 6% coupon bond ( at $800 par value) on market, which sells for $900 and
Company wants to issue 8 year bond. Currently company has 6% coupon bond ( at $800 par value) on market, which sells for $900 and makes semiannual payment with 8 year maturity. What annual coupon rate should company set on new bonds for selling them at par?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
