Seether Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 6.6 percent coupon bonds on the market that sell for $847.26, make semiannual payments, and mature in 19 years. What coupon rate (as a APR) should the company set on its new bonds if it wants them to sell at par? (Note: the yield to maturity of the old bonds can be used as the coupon rate for the new bonds.)

rev: 09_18_2012

Multiple Choice

• 8.20%

• 4.10%

• 8.50%

• 7.90%

• 8.10%