Sampson Inc. wants to issue new 10-year bonds. The company currently has 7 percent coupon bonds on the market that sell for $1,036.35 (par value = $1,000), make semi-annual payments, and matures in 10 years.
What coupon rate(paid semi-annually) should the company set on its new bondsif it wants them to sell at par?
Hacker Software has 6.2 percent coupon bonds on the market with 4 years to maturity. The bonds make semi-annual payments and currently sell for 105 percent of par. What is the yield to maturity on the bonds?