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Seether Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 7.4 percent coupon bonds on the market that
Seether Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 7.4 percent coupon bonds on the market that sell for $745.15, make semiannual payments, have a $1,000 par value, and mature in 18 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? |
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