Question
Pembroke CO wants to issue new 20 year bonds for expansion project. The company currently has 7 percent coupon bonds on the market that sell
Pembroke CO wants to issue new 20 year bonds for expansion project. The company currently has 7 percent coupon bonds on the market that sell for $1063, make semiannual payments and mature in 20 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
