Your company currently has

7%

coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of

$1067.

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.)

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Part 1

You need to set a coupon rate of

enter your response here%.

(Round to two decimal places.)

Your company currently has 7% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1067. 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 \%. (Round to two decimal places.)