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A firm issues 2-year bonds with a coupon rate of 4%, paid semiannually. The credit spread for this firm's 2-year debt is 1.2%. New 2-year
A firm issues 2-year bonds with a coupon rate of 4%, 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%. What should the price of the firm's outstanding 2-year bonds be if their face value is $1000? A. $1,342.89 OB. $767.37 O C. $4.80 OD. $959.21
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