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RFK, Inc. wants to issue new 15-year bonds at par. They are told that the yield to maturity (YTM) on these bonds will be the
RFK, Inc. wants to issue new 15-year bonds at par. They are told that the yield to maturity (YTM) on these bonds will be the same as the YTM on other RFK bonds with 15 years to maturity, 6.50% semi-annual coupons and a current price of $975.00. What coupon rate should the company set on its new bonds if it wants them to sell at par?
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