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General Matter’s outstanding bond issue has a coupon rate of 11.8%, and it sells at a...

General Matter’s outstanding bond issue has a coupon rate of 11.8%, and it sells at a yield to maturity of 9.45%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? (Enter your answer as a percent rounded to 2 decimal places.)

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If the firm wishes to issue additional bonds to the public at face value then the bonds should offer a coupon rate same as yield to maturity, which is 9.45%

The answer is 9.45%

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