Seether co wants to issue new 12-year bonds for some


Seether Co. wants to issue new 12-year bonds for some much-needed expansion projects. The company currently has 6.8 percent coupon bonds on the market that sell for $723.81, make semiannual payments, and mature in 12 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: Seether co wants to issue new 12-year bonds for some
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