Aj pharmaceuticals would like to issue 20-year bonds to


AJ Pharmaceuticals would like to issue 20-year bonds to obtain the remaining funds for the new, Mexico plant. The company currently has 6.5% semiannual coupon bonds in the market that sell for $1,040 and mature in 20 years.

What coupon rate should AJ Pharmaceuticals set on its new bonds to sell them at par value?

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Financial Econometrics: Aj pharmaceuticals would like to issue 20-year bonds to
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