Question
Your company needs to raise $2 million by selling some coupon bonds at par value. Comparable bonds in the market have a 7.5 percent annual
Your company needs to raise $2 million by selling some coupon bonds at par value. Comparable bonds in the market have a 7.5 percent annual coupon, 15 years to maturity, and are selling at $976.87. What coupon rate should you set on your company bonds?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
