QUESTION $3$

Use the following information to answer this question and the next question. new $20-$year bond to finance a factory to make new Bozos. The new bond will make annual coupon payments.

What is the yield to maturity of the Bozo Company's existing bonds?

$9\mathrm{.}52\%$

$10\mathrm{.}00\%$

$10\mathrm{.}25\%$

$10\mathrm{.}51\%$

QUESTION $4$

What coupon rate should be set for the new bonds of the Bozo Company for these bonds to sell at par?

$10\mathrm{.}00\%$

$10\mathrm{.}25\%$

$10\mathrm{.}51\%$

$9\mathrm{.}52\%$