Your company currently has $1000 par, 6% coupon bonds with ten years to maturity and a price of $1078.  If you want to issue new ten-year coupon bonds at par, what coupon rate do you need to set?  Assume that for both bonds, the next coupon payment is due in exactly 6 months

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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Your company currently has $1000 par, 6% coupon bonds with ten years to maturity and a price of $1078.  If you want to issue new ten-year coupon bonds at par, what coupon rate do you need to set?  Assume that for both bonds, the next coupon payment is due in exactly 6 months

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