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Pink Socks Inc. is planning to issue new annual coupon bonds with a maturity of ten years. The firms outstanding (annual coupon paying) bonds have
Pink Socks Inc. is planning to issue new annual coupon bonds with a maturity of ten years. The firms outstanding (annual coupon paying) bonds have a 7.5% coupon rate and mature in ten years. They are currently selling for $1,013.03. What would the coupon rate on the new bonds have to be such that they will sell at par upon issuance?
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