Question: 3 . Seether Co . wants to issue new 2 0 - year bonds for an expansion project. The company currently has 1 0 %

3. Seether Co. wants to issue new 20-year bonds for an expansion project. The company currently has 10% coupon bonds on the market that sell for $980, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at $1,100? The par value of the bonds is $1,000.

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