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On January 1 , 2 0 0 2 , Zheng Corporation will issue new bonds to finance its expansion plans. In its efforts to price

On January 1,2002, Zheng Corporation will issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate that is due January 1,2017. Thi; firm's bonds currently are selling for $1,091.96. 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?
6.50%
7.00%
5.75%
6.00%
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