Seether Co. wants to issue new 11-year bonds for some much needed expansion projects. The company...

Seether Co. wants to issue new 11-year bonds for some much needed expansion projects. The company currently has 11.0 percent coupon bonds on the market that sell for $1,122.91, make semiannual payments, and mature in 11 years. What coupon rate should the company set on its new bonds if it wants them to sell at par value?

A. 9.50%

B. 9.10%

C. 8.90%

D. 4.60%

E. 9.20%

Expert Solution

Answer is Option E)

jeff jeffy answered 10 months ago

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