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On January 1, 1997, HomeSafe Cab Co. will issue new bonds to finance its expansion plans. Currently outstanding 9%, January 1, 2010 HomeSafe bonds are

On January 1, 1997, HomeSafe Cab Co. will issue new bonds to finance its expansion plans. Currently outstanding 9%, January 1, 2010 HomeSafe bonds are selling for $1067.91. if interest is paid semiannually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par?

a. 7.99%

b. 4.21%

c. 7.72%

d. 4.00%

e. 8.13%

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Question 30 (1 point) On January 1, 1997, HomeSafe Cab Co. will issue new bonds to finance its expansion plans. Currently outstanding 9%, January 1, 2010 HomeSafe bonds are selling for $1,067.91. If interest is paid semiannually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par? A) 7.99% B) 4.21% OC) 7.72% D) 4.00% E) 8.13%

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