ABC Corp has an outstanding bond traded at $1095. The bond has a 6% annual coupon and
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Question:
ABC Corp has an outstanding bond traded at $1095. The bond has a 6% annual coupon and has 5 years to maturity. Which one of the following is the best indication of ABC Corp's credit spread (or default risk premium) if the risk-free rate is 1.5%
| 4.00% |
| 3.874% |
| 2.874% |
| 2.374% |
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