Wyland Co wants to issue new 25 year bonds for some much needed expansion projects The company currently has 8 percent coupon bonds on the market that sell for $1,063, make semiannual payments, and mature in 20 years What coupon rate should the company set on its new bonds if it wants them to sell ...

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Wyland Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has

Question:

Wyland Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 8 percent bonds on the market that sell for $1,063, make semiannual payments, and mature in 20 years. What rate should the company set on its new bonds if it wants them to sell at par?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...