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Please advise for the solution of the below exercise, step by step solution, with some explanation if you can. On january 1, 1997, Home safe
Please advise for the solution of the below exercise, step by step solution, with some explanation if you can.
On january 1, 1997, Home safe cab will issue new bonds to finance its expansion plans. Currently outstanding 9%, January, 2010 Homesafe bonds are selling for 1,067.91$. If interest is paid semi-annually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par?
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