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Chamberlain Co. wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 9 percent coupon bonds on the market that sell for $1,095, make semi annual payments, and mature in 16 years.

What coupon rate should the company set on its new bonds if it wants them to sell at par?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91549821

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