Airjet best parts inc would like to issue 20-year bonds to, Ask an Expert

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AirJet Best Parts, Inc. would like to issue 20-year bonds to obtain remaining funds for the new Mexico plant. The company currently has 7.5% semiannual coupon bonds in the market that sell for $1,062 and mature in 20 years.

1. What coupon rate should AirJet Best Parts set on its new bonds to sell them at par value?

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

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9865011

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