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QUESTION
Your company currently has $ 1 comma 000 par, 5.75 % coupon bonds with 10 years to maturity and a price of $ 1 comma 077 .
Your company currently has
$ 1 comma 000
par,
coupon bonds with 10 years to maturity and a price of
$ 1 comma 077
.
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. (question 8 of ch 6)
