Question
General Matter's outstanding bond issue has a coupon rate of 7% and a current yield of 7.6%, and it sells at a yield to maturity
General Matter's outstanding bond issue has a coupon rate of 7% and a current yield of 7.6%, and it sells at a yield to maturity of 9.25%. The firm wishes to issue additional bonds to the public at par value. What coupon rate must the new bonds offer in order to sell at par?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
