Question
A firm issues five-year bonds with a coupon rate of 6.1%, paid semiannually. The credit spread for this firm's five-year debt is 0.8%. New five-year
A firm issues five-year bonds with a coupon rate of 6.1%, paid semiannually. The credit spread for this firm's five-year debt is 0.8%. New five-year Treasury notes are being issued at par with a coupon rate of 3.7%. What should the price of the firm's outstanding five-year bonds be per $100 of face value?
A.$ 128.51
B.$ 85.67
C.$ 107.09
D.$ 149.93
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
