Mlk inc wants to issue new 15-year bonds for some


MLK, Inc. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon bonds on the market that sell for $975.00, make semi annual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

6.77 percent

6.50 percent

6.67 percent

6.37 percent

3.38 percent

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Financial Management: Mlk inc wants to issue new 15-year bonds for some
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