(Solved): QUESTION 1 The Golos Company has an 8% coupon bond outstanding. The bond makes semiannual coupon pay ...

QUESTION 1 The Golos Company has an

coupon bond outstanding. The bond makes semiannual coupon payments and has 12 years remaining to maturity. Its market price is

. It is issuing a new 12 -year bond to finance a factory to make new Golos. The new bond will make annual coupon payments. What coupon rate should be set for the new bonds of the Golos Company for these bonds to sell at par? (Hint: Find YTM of the current bond and adjust for different payment schedule of the new bond.) 10.80% 10.28% 9.79% 9.32% 8.87% 8.44% 8.02% 7.63%