Bonner Metals Wants to Issue New 18-Year Bonds for Some

question 100

Multiple Choice

Bonner Metals wants to issue new 18-year bonds for some much-needed expansion projects.The company currently has 11 percent bonds on the market that sell for $1,459.51,make semiannual payments,and mature in 18 years.What should the coupon rate be on the new bonds if the firm wants to sell them at par?

• A)5.75 percent
• B)6.23 percent
• C)6.41 percent
• D)6.60 percent
• E)6.79 percent

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