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M-1: Mod Industries has 11% coupon bonds on the market that are selling at $987, pay interest semi-annually, and mature in ten years. The company

M-1: Mod Industries has 11% coupon bonds on the market that are selling at $987, pay interest semi-annually, and mature in ten years. The company would like to issue $2.25 million in new 20-year bonds. What coupon rate should be applied to the new bonds if Mod Industries wants to sell them at par?

11.51%

11.46%

11.22%

10.98%

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