Pembroke co wants to issue new 20-year bonds for some


Question: Pembroke Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,063, make semiannual payments, and mature in 20 years What coupon rate should the company set on its new bonds if it wants them to sell at par?

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Finance Basics: Pembroke co wants to issue new 20-year bonds for some
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