Seether Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 11.4 percent coupon bonds on the market that sell for $1,329.25, make semiannual payments, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

rev: 09_18_2012

8.00%

7.70%

7.90%

4.00%

8.30%