Problem:
The Griswold Co. wants to raise $8 million by selling some coupon bonds at par. Comparable bonds in the market have a 6 percent semi-annual coupon, 8 years to maturity, and are selling at 96.9 percent of par.
Required:
Question: What coupon rate should the Griswold Co. set on their bonds?
Note: Show supporting computations in good form.