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Company X originally issued 15-year bonds at par. The bonds currently have 10 years remaining until they mature. The bonds have a coupon rate of 7.6% with coupons paid semiannually. They currently trade at 1151.50 per bond. a. Find the yield to maturity on the bonds. b. Company X wants to issue more debt. They are considering 10-year bonds. What coupon rate will the new bonds have if the added debt does not alter the chance that Company X will default? Explain.

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Category:- Basic Finance
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