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Your company currently has 6.5% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1079. If you want to
Your company currently has 6.5% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1079.
If you want to issue new 10-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 6 months.)
You need to set a coupon rate of ?
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