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The Griswold Co. wants to raise $8 million by selling some coupon bonds at par.

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Question

24. The Griswold Co. wants to raise $8 million by selling some coupon bonds at par. Comparable bonds in the market have a 6 percent semi-annual coupon, 8 years to maturity, and are selling at 96.9 percent of par. What coupon rate should the Griswold Co. set on their bonds?;A. 5.82 percent;B. 6.00 percent;C. 6.19 percent;D. 6.25 percent;E. 6.50 percent;Additional Requirements;Level of Detail: Show all work

 

Paper#28729 | Written in 18-Jul-2015

Price : $27
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