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Kashi Inc. is looking to issue 20-year maturity public bonds for the first time. These...

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Finance

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Kashi Inc. is looking to issue 20-year maturity public bonds for the first time. These bonds will pay an annual coupon rate. The bonds have been assessed to have the same risk as those of Chateau Corp. The information about the Chateau bonds is specified below Par Value = $1,000; Maturity = 20 years; Current price = $979.86; Coupon Rate = 5.5% paid semi-annually. What coupon rate should Kashi set on their bonds if they want to issue their bonds at par value

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