in disguise. What are the sssues here? Why would a copame want to seil "equity in disguise" Bond Refunding 21.10 Boadeen Manufacturing intends to iasue callable perpetual bonds with aninual coupon payments. The bonds are callable at S1.175. Opeyear interest ales are 9 percent. There is a 60 pereent probability that longderm interest rates one year from todiy will be 10 perceat, and a 40 pereent probability that long-ermi interest rates will be 8 percent. Assume that if interest rates tall, the bonds aill be called. What coopon rote shoukd the boeds have in order to sell at par value?.