Your company currently has $1,000 par, 5% coupon bonds with 10 years to maturity and a price of $1,065. If you want to issue new 10 -year coupon bonds at pa to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.)

Your company currently has $1,000 par, 5% coupon bonds with 10 years to maturity and a price of $1,065. If you want to issue new 10 -year coupon bonds at pa to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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