Seether Co. wants to issue new 12-year bonds for some much-needed expansion projects. The company currently...

Seether Co. wants to issue new 12-year bonds for some much-needed expansion projects. The company currently has 7.2 percent coupon bonds on the market that sell for $772.12, make semiannual payments, and mature in 12 years. what coupon rate should the company set on its new bonds if it wants them to sell at par? Please answer with excel using YIELD

Expert Solution

CROSS CHECK WITH "RATE" FORMULA. THE ANSWER TALLIES. SO CORRECT SOLUTION. THANK YOU

ANSWER : COUPON RATE = 10.60%

jeff jeffy answered 1 year ago

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

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