P7-22 Bond Yields [LO2] Chamberlain Company wants to issue new 14-year bonds for some much-needed expansion projects. The company currently has 6.4 percent coupon bonds on the market that sell for $644.18, make semiannual payments, and mature in 14 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 11.90% 5.80% 11.50% 11.60% 11.30%