Question 29 Zheng Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for $1,150. 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? 5.98% 6.71% 3% 4.5% Question 19 Using the capital asset pricing model, the cost of common stock equity is the return required by investors as compensation for Aprica volatility of the stock B the specific risk of a fimm C. afirm's systematic risk D afirm's diversifiable risk