answers

a. 7.10%

b. 7.50%

c. 3.60%

d. 6.90%

e 7.20%

Chamberlain Company wants to issue new 13-year bonds for some much-needed expansion projects. The company currently has 7.2 percent coupon bonds on the market that sell for $1,000.00, make semiannual payments, and mature in 13 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000