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Zheng Corporation Plans to Issue New Bonds to Finance Its

question 21

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Zheng Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for $1,091.96. If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par?


Definitions:

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The concentration of delta-9-tetrahydrocannabinol, the psychoactive compound in cannabis, which determines the potency and psychoactive effects of the substance.

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