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xyz co. wants to issue new 25 year bonds for some much needed expansion projects. The company currently has 4.9% coupon bonds on the market
xyz co. wants to issue new 25 year bonds for some much needed expansion projects. The company currently has 4.9% coupon bonds on the market that sells for 1123,make semiannual payments, have a 1000 par value and mature in 19 years. What coupon rate should the company set on its new bonds if it wants to sell them at par?
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