What coupon rate should the company set on its new bonds, Financial Management

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What coupon rate should the company set on its new bonds

Problem

Bond Yields BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 4.8 percent coupon bonds on the market that sell for $1,028, make semiannual payments, have a $1,000 par value, and mature in 25 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: What coupon rate should the company set on its new bonds

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