Question
Coronel Corporation wants to issue new 20-year bonds. The company currently has 8.5 percent bonds on the market that sell for $994, make semiannual payments,
Coronel Corporation wants to issue new 20-year bonds. The company currently has 8.5 percent bonds on the market that sell for $994, make semiannual payments, and mature in seven years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?
- 8.75%
- 9.23%
- 8.41%
- 8.62%
- 8.87%
Show work and use formulas.
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Financial Management
Authors: I.M. Pandey
11th Edition
9325982293, 978-9325982291
