General matterrsquos outstanding bond issue has a coupon, Financial Management

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General matterrsquos outstanding bond issue has a coupon

General Matter’s outstanding bond issue has a coupon rate of 9.4%, and it sells at a yield to maturity of 7.80%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? (Round your answer to 2 decimal places.)

Coupon rate %

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Financial Management: General matterrsquos outstanding bond issue has a coupon

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Financial Management: General matterrsquos outstanding bond issue has a coupon

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