Uliana co wants to issue a 20-year bond for some much-needed expansion projects. The company currently has 6% coupon bonds on the market with a par value of $1000 that sells for $967, make semiannual payments and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Uliana co wants to issue a 20-year bond for some much-needed expansion projects. The company currently has 6% coupon bonds on the market with a par value of $1000 that sells for $967, make semiannual payments and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? 

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