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1. Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 80 basis points 0.80%.

1. Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 80 basis points 0.80%. Your firm's five-year debt has an annual coupon rate of 6.1%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 1.8%. What should be the price of your outstanding five-year bonds?

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