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Pembroke Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that

Pembroke Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,060, 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?

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