Question

Your company currently has

$ 1 comma 000$1,000

​par,

5.25 %5.25%

coupon bonds with 10 years to maturity and a price of

$ 1 comma 075$1,075.

If you want to issue new​ 10-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 six months.

You need to set a coupon rate of

nothing​%.

​(Round to two decimal​ places.)

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE