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10) A firm issues two-year bonds with a coupon rate of 6.0%, paid semiannually. The credit spread for 10) this firm's two-year debt is 0.8%.

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10) A firm issues two-year bonds with a coupon rate of 6.0%, paid semiannually. The credit spread for 10) this firm's two-year debt is 0.8%. New two-year Treasury notes are being issued at par with a coupon rate of3.7%. What should the price of the firm's outstanding two-year bonds be per S100 of face value? A) S102.84 B) $82.27 D) $143.97 C) S123.41

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