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RAK Co. want to issue new 16 year bonds for some much-needed expansion projects. The company currently has 7% coupon bonds on the market that
RAK Co. want to issue new 16 year bonds for some much-needed expansion projects. The company currently has 7% coupon bonds on the market that sell for $1035, have a par value of $1000, make semi-annual payments, and mature in 16 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
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