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A firm issues 2-year bonds with a coupon rate of 4.2%, paid semiannually. The credit spread for this firm's 2-year debt is 1.2%. New 2-year

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A firm issues 2-year bonds with a coupon rate of 4.2%, paid semiannually. The credit spread for this firm's 2-year debt is 1.2%. New 2-year Treasury notes are being issued at par with a coupon rate of 5.4%. What should the price of the firm's outstanding 2-year bonds be if their face value is $1000? A. $764.57 B. $4.80 C. $955.71 D. $1,338.00

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