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BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 8.9 percent coupon bonds on the market that sell for $1,129, make semiannual payments, have a par value of $1,000, and mature in 18 years. What coupon rate should the company set on its new bonds if it wants them to sell at par

asked
User Optilude
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1 Answer

4 votes

Answer:

Coupon rate to be set on new bonds = 7.58%

Step-by-step explanation:

See attached picture.

BDJ Co. wants to issue new 18-year bonds for some much-needed expansion projects. The-example-1
answered
User Franey
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8.0k points
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