McConnell Corporation has bonds on the market with 13 years to maturity, a YTM of 7.4 percent, a par value of $1,000, and a current price of $1,296.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?

Multiple Choice

• 11.09%

• 8.48%

• 10.99%

• 22.06%

• 17.01%

• Chamberlain Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 9.4 percent coupon bonds on the market that sell for $982.67, make semiannual payments, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.

  Multiple Choice

• 9.60%

• 9.90%

• 9.50%

• 9.30%

• 4.80%