Question #11650423

How to find the coupon rate?

Seether Co. wants to issue new 10-year bonds for some much-needed expansion projects. The company currently has 8.8 percent coupon bonds on the market that sell for $949.29, make semiannual payments, and mature in 10 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

2013-11-07 19:07:15

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