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On January 1, 2004, Pearce and Co. will issue new bonds to finance i.pdf
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On January 1, 2004, Pearce and Co. will issue new bonds to finance i.pdf

  1. On January 1, 2004, Pearce and Co. will issue new bonds to finance its expansion plans. Currently outstanding 9%, January 1, 2020 Pearce and Co. bonds are selling for $1141. if intrest is paid semiannually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par? Solution PV principal = Face value / (1+YTM)^n = = $ 251
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