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Cornell wants to issue new 20-year bonds for some much-needed expansion projects. The university currently has 6 percent coupon bonds on the market that sell
Cornell wants to issue new 20-year bonds for some much-needed expansion projects. The university currently has 6 percent coupon bonds on the market that sell for 108.3% of its $1,000 par value,makes semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
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