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Your company currently has 5 . 2 5 % coupon - rate bonds ( coupons are paid semi - annually ) with ten years to
Your company currently has couponrate bonds coupons are paid semiannually with ten 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 months.
You need to set a coupon rate of
Round to two decimal places.
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