MLK, Inc. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 5.6 percent coupon bonds on the market that sell for $975.00, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? 2.93 percent 5.60 percent 5.85 percent 6.67 percent 6.77 percent

One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.8 percent and pay interest annually. Today, the market rate of interest on these bonds is 7.2 percent. How does the price of these bonds today compare to the issue price? 4.99 percent lower 5.38 percent lower 6.05 percent lower 0.07 percent higher 3.46 percent lower