If a firm raises capital by selling new bonds, it could be called the "issuing firm," and the coupon rate is generally set equal to the required rate on bonds of equal risk. 1. True
2. False

True

Explanation:

An issuing firm is an organization which registers, and then sells security like bonds and stocks on the primary market.

It should be noted that when a firm raises capital through the sale of new bonds, they can be also referred to a the issuing firm, and the coupon rate is usually set to be equal to the required rate on bonds of equal risk.

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