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Seether Co. wants to issue new 14-year bonds for some much-needed expansion projects. The company currently has 11.0 percent coupon bonds on the market that
Seether Co. wants to issue new 14-year bonds for some much-needed expansion projects. The company currently has 11.0 percent coupon bonds on the market that sell for $1,000.00, make semiannual payments, and mature in 14 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Multiple Choice 5.50% 10.70% O O 11.30% 10.90% O O 11.00%
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