Rak co wants to issue new 19-year bonds for some, Financial Management

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Rak co wants to issue new 19-year bonds for some

RAK Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 6 percent coupon bonds on the market that sell for $1,080, make semiannual payments, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

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Financial Management: Rak co wants to issue new 19-year bonds for some

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Financial Management: Rak co wants to issue new 19-year bonds for some

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