Question

Chamberlain Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,060, make semiannual payments, and mature in 19 years. 10 points What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) eBook Print Coupon rate References

Answer 1

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BOND - Microsoft Excel (Product Activation Failed) Add-Ins View - 2x AutoSum - A Dr General Fill Wrap Text Merge & Center Z TU File Home Insert Page Layout Formulas Data Review % Cut Calibri -11AA = = = E Copy Paste BI U DA * Format Painter Clipboard Font BH15 $ - % 8. Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells BE BE BG BH BI BL Ham to 00 SEMI ANNUAL COUPON BOND FACE VALUE COUPON COUPON ($) YEARS NO OF PERIODS PRICE 1000 7.00% 35 SEMI ANNUAL 19 38 1060 YTM YTM (ANNUAL) = 3.2239% (=RATE(BH7,-BH5,BH8,-BH3)] 6.448% AM answer COUPON RATE = 6.45% (round to 2 decimals] 14 15 16 17 HE Rea L WARRANTrefund bond CLEAN INVOICE PRICE Sheet1 Sheet3 Sheet4 Sheets Sheets Sheet7 Sheets Sheet Sheet10 P, IP, MRP, INFLATION YIELD ferences Sheet11 0 SHO 140% 0 + 24-09-2019