Coupon rate of percent on its new bonds


Seether Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $930, make semiannual payments, and mature in 20 years. The company should set a coupon rate of percent on its new bonds if it wants them to sell at par.

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Accounting Basics: Coupon rate of percent on its new bonds
Reference No:- TGS079339

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