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Sadler Shoe Supply has one issue of bonds outstanding. These bonds have a 4.5 percent annual coupon with 15 years left until maturity and sell
Sadler Shoe Supply has one issue of bonds outstanding. These bonds have a 4.5 percent annual coupon with 15 years left until maturity and sell at 98 percent of par. The company needs to raise an additional $0.6 million and is considering a second bond issue. What coupon rate should Sadler Shoe Supply set on this new issue of bonds, assuming the bonds will begin selling at par?
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