Your company currently has $1,000 par, 5.25% coupon bonds with 10 years to maturity and a price of $1,072. If you want to issue new10-year coupon bonds atpar, what coupon rate do you need toset? Assume that for bothbonds, the next coupon payment is due in exactly six months.

You need to set a coupon rate of __%. (Round to two decimalplaces.)