Show work and explain please for lifesaver...
Acme originally issued 15-year bonds at par. The bonds currently have 10 years remaining until they mature. The bonds have a coupon rate of 7.6% with coupons paid semi-annually. They currently trade at 1151.50 per bond.
Find the yield to maturity on the bonds.
Acme wants to issue more debt. They are considering 10-year bonds. What coupon rate will the new bonds have if the added debt does not change the chance that Acme will default? Explain.