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please use the first question to answer question 4. the answer is not 10.25 Use the following information to answer this question and the next
please use the first question to answer question 4. the answer is not 10.25
Use the following information to answer this question and the next question. The Bozo Company has an 8% coupon bond outstanding. The bond makes semiannual coupon payments and has 12 years remaining to maturity. Its market price is $846.64. It is issuing a new 20 -year bond to finance a factory to make new Bozos. The new bond will make annual coupon payments. What is the yield to maturity of the Bozo Company's existing bonds? 9.52%10.00%10.25%10.51% QUESTION 4 What coupon rate should be set for the new bonds of the Bozo Company for these bonds to sell at par? 9.52%10.25%10.51%10.00% Step by Step Solution
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