Explore BrainMass

Explore BrainMass

    Bond coupon rate and yield to maturity

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A company currently has 10 percent coupon bonds on the market that sell for 1,063, 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?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:45 am ad1c9bdddf
    https://brainmass.com/business/business-math/coupon-rate-company-new-bonds-418233

    Solution Summary

    The solution determines what coupon rate the company should set on its new bonds if it wants to sell at par (see attachment).

    $2.19

    ADVERTISEMENT