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Facebook plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Facebook has identified a company of similar
Facebook plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Facebook has identified a company of similar risk with an outstanding bond issue that has an & percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for S If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue o sell at par? What will be the current yield of this bond?
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