Problem:
BDJ Co wants to issue new 19-year bonds for some much needed expansion projects. The company currently has 9.3 percent coupon bonds on the market that sell for $1133, make semiannual payments, and mature in 19 years.
Required:
Question: What coupon rate should the company set on its new bonds if it wants them to sell at par?
Note: Show supporting computations in good form.