Uliana Company wants to issue new 21-year bonds for some much-needed expansion projects. The company currently has 9.6 p

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answerhappygod
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Uliana Company wants to issue new 21-year bonds for some much-needed expansion projects. The company currently has 9.6 p

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Uliana Company wants to issue new 21-year bonds for somemuch-needed expansion projects. The company currently has 9.6percent coupon bonds on the market that sell for $1,136, makesemiannual payments, have a par value of $1,000, and mature in 21years. What coupon rate should the company set on its new bonds ifit wants them to sell at par?
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