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A firm issues 10-year bonds with a coupon rate of 5%, paid semiannually. The credit spread for this firm's 10-year debt is 1.2%. New 10-year
A firm issues 10-year bonds with a coupon rate of 5%, paid semiannually. The credit spread for this firm's 10-year debt is 1.2%. New 10-year Treasury notes are being issued at par with a coupon rate of 4.8%. What should the price of the firm's outstanding 10-year bonds be if their face value is $1000? A. $24.00 B. $1,295.86 C. $925.61 D. $740.49
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