Problem:
BDJ Co. wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, and mature in 22 years.
Required:
Question: What coupon rate should the company set on its new bonds if it wants them to sell at par?
Note: Show supporting computations in good form.