A firm wants to issue bonds with a total face value of $28.9 million. The bonds will be coupon bonds with a maturity of 6 years. The firm estimates investors will require a yield-to-maturity of 5.9%. If the firm wants to issue the bonds to investors at par value, what should it select as its coupon rate? Enter your answer in decimal format showing four decimal places. That is, if your answer is 3.5%, enter .0350.

Answer rating: 100% (QA)

The coupon rate is the annual interest payment as a percentage of the ... View the full answer