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Masterson company wants to issue new 10-year bonds. The company currently has 6 percent coupon bonds on the market that sell for $1,038, make semiannual
Masterson company wants to issue new 10-year bonds. The company currently has 6 percent coupon bonds on the market that sell for $1,038, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new semiannual bonds if it wants them to sell at par? (For YTM, you need to write down the expression for YTM and then use a spreadsheet program or a financial calculator to do this question.) (Done on paper)
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