BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently...

BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8 percent coupon bonds on the market that sell for $1,125, make semiannual payments, and mature in 25 years.

Required:

What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Coupon rate

%

Expert Solution

As nothing was mentioned excel is used. If you need with FINANCIAL formula, let me know, will do that also. Thank you.

jeff jeffy answered 3 months ago

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