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A firm issues 2-year bonds with a coupon rate of 4.8%, 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 4.8%, 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 5.3%. What should the price of the firm's outstanding 2-year bonds be if their face value is $1000? A. $1,356.03 B. $774.87 C. $968.59 D. $4.80

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