What coupon rate should the company set on its new bonds, Finance Basics

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What coupon rate should the company set on its new bonds

Problem

Uliana Company wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 8.9 percent coupon bonds on the market that sell for $1,129, make semiannual payments, have a par value of $1,000, and mature in 18 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

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