Question: Make sure to select one of the answer choices given LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company
Make sure to select one of the answer choices given
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon bonds on the market that sell for $972.78, 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 par? A. The same rates as the yield to maturity on the old bonds B. The same rate as the current yield on the new bonds C. The same rate as the yield to maturity on the new bonds D. The same rate as current market interest rates E. All of the first four answers above are correct F. None of the first four answers above are correct
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