Problemgeneral matters outstanding bond issue has a coupon, Ask an Expert

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Problem:

General Matter's outstanding bond issue has a coupon rate of 10.8%, and it sells at a yield to maturity of 8.75%. The firm wishes to issue additional bonds to the public at face value.

Task:

Question 1: What coupon rate must the new bonds offer in order to sell at face value? Explain in detail.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146255

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