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General Matter s outstanding bond issue has a coupon rate of 1 0 % , and it sells at a yield to maturity of 9

General Matter

s outstanding bond issue has a coupon rate of

10 %,

and it sells at a yield to maturity of

9.25 % .

The firm wishes to issue additional bonds to the public with a par value of

100 .

What coupon rate must the new bonds offer in order to sell at their par value?

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