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Hagelin Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that
Hagelin Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 20 years. Both bonds have a par value of $1,000.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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