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A BBB bond has a coupon rate of 4.8%, matures in 5 years and trades at a discount to par. A 5-year treasury bond
A BBB bond has a coupon rate of 4.8%, matures in 5 years and trades at a discount to par. A 5-year treasury bond makes coupon payments on the same days as the BBB bond. It has a coupon rate of 2.9% and trades at a premium to par. Then the BBB bond's credit spread must be: A. greater than 1.9% B. less than 1.9% C. equal to 0% D. equal to 1.9%
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
