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RAK Co . wants to issue new 2 0 - year bonds for some much - needed expansion projects. The company currently has 5 .

RAK Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.7 percent coupon bonds on the market that sell for $1,048, have a par value of $1,000, make semiannual payments, and mature in 20 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?

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