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Pembroke Co. wants to issue new 20-year bonds for some much-needed expansion projects.

Pembroke Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 10 percent coupon bonds on the market that sell for $1,063, make semiannual payments, and mature in 20 years. What coupon rate shoulc the company set on its new bonds if it wants to sell at par.
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Hi Student, please find... View the full answer

8440913.xlsx

Face value
Annual Coupon Rate
Years to maturity
Payment Frequency
Price of Bond
YTM Calculation of YTM
1000
10.00%
20.0
2
1063
0.0930052409
or
9.30 The company should set 9.30% as coupon rate for...

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