1. Using the spread above Treasury rates required by investors for the risk of your company defaulting on its senior unsecured obligations, show at what coupon rate your company could today issue a 10-year senior unsecured straight bond that makes semi-annual payments and sells for its par value/principal amount of $1000 per bond?

Spread in Basis Points=27.158

Credit Rating=A2

TY=1.38

TIPS=0.13

PV=Par Value=$1,000

t=10 years*2=20 payments