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Air Jet Best Parts, Inc. would like issue 20- years’ bonds to obtain remaining funds for the New Mexico plan. The company currently has 7.5% semiannually coupon bonds in the market that sell for $1,062 and mature in 20 years.

What coupon rate should Air Jet Best Parts set on its new bonds to sell them at par value?

What is the difference between the coupon rate and the YTM of bonds?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91608421

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