Your company currently has 6.5% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1086.

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 %?