Problem $6-22$ Bond Yields $[$LO $2]$

Uliana Company wants to issue new $20-$year bonds for

some much$-$needed expansion projects. The company

currently has $10$ percent coupon bonds on the market

that sell for $$1,140,$ make semiannual payments, have a

par value of $$1,000,$ and mature in $20$ years. What

coupon rate should the company set on its new bonds if

it wants them to sell at par?

Note: Do not round intermediate calculations and

enter your answer as a percent rounded to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.$

Answer is complete but not entirely correct.

Coupon rate

$9\mathrm{.}00$

$\%$