Problembdj co wants to issue new 22-year bonds for some, Ask an Expert

Accounting

Problem:

BDJ Co. wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, and mature in 22 years.

Required:

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

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169112

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