Problem:
Coccia Co. wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 16 years.
Required:
What coupon rate should the company set on its new bonds if it wants them to sell at par?
Note: Please describe comprehensively and give step by step solution.