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Your company currently has $ 1 , 0 0 0 par, 6 . 0 0 % coupon bonds with 1 0 years to maturity and
Your company currently has $ par, coupon bonds with years to maturity and a
price of $ If you want to issue new year coupon bonds at par, what coupon rate do
you need to set? Assume that for both bonds, the next coupon payment is due in exactly six
months.
You need to set a coupon rate of
Round to two decimal places.
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