Answer:
9.25%
Explanation:
One quick rule of thumb is that for a bond to issued at par value the coupon rate must equal the yield to maturity,in other words,in order for General Matter to issue the new bond at face value,the coupon rate must be equal to 9.25%,the same as the yield to maturity.
The above can be verified below:
If the coupon rate is 9.25%,then the coupon interest would be $92.5(9.25%*$1000)
the rate is 9.25%
face value is $1000
the pv which is the current price is not known
nper is the length of time the bond would be issued for is also not known hence it taken as zero
the price of the bond=-pv(9.2%,0,92.5,1000)=$1000
price of the bond=par value=$1000
