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An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following: Rating

An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities.

An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following: Rating AAA AA A BBB BB YTM 4.45% 4.60% 4.75% 4.95% 5.15% Exxon Mobil (XON) has debt that is AAA rated. Suppose an investor wants to value Exxon bonds that will mature in 10-years. He sees one Exxon bond that pays a 8.50% annual coupon with face value of $1,000. What should the bond trade for today?

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