Bear co wants to issue a new 10-year bonds to support its


Bear Co. wants to issue a new 10-year bonds to support its expansion plans. The company currently has 5.3 percent coupon bonds on the market that sell for $1,075, make semiannual payments and mature in 10 years. The face value of the bond is $1,000. What approximate coupon rate should the company set on its new bonds if it wants to sell at a par?

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Financial Management: Bear co wants to issue a new 10-year bonds to support its
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