question archive Chamberlain Co
Chamberlain Co
Subject:FinancePrice: Bought3
Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.2 percent coupon bonds on the market that sell for $1,040.18, 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? Assume a par value of $1,000.
