(SOLVED) General Matter s outstanding bond issue has a coupon rate of


Question Description:

$15

General Matter’s outstanding bond issue has a coupon rate of 7% and a current yield of 7.6%, and it sells at a yield to maturity of 9.25%. The firm wishes to issue additional bonds to the public at par value. What coupon rate must the new bonds offer in order to sell at par?

Answer

$15