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analyse one of the firm s outstanding bonds. First, compute the credit spread of this bond, by calculating the yield - to - maturity on

analyse one of the firms outstanding bonds. First, compute the credit spread of this bond, by calculating the yield-to-maturity on this bond, and comparing it with the yield on Treasury bonds of comparable duration. (For information on AUS treasury yields see the RBA website and look for Capital Market Yields Government Bonds Monthly. For current US treasury yields, go to Yahoo Finance, and type treasury yield.) Second, estimate the bonds price one year from now (assuming that interest rates will remain constant), and comment on the reason behind the expected price change (if any) from the current price of the bond. Finally, explain which credit rating you expect your company to receive from the credit rating agencies, based on your analysis of the company bond.
MSFT 3.300%06 Feb 2027 Corp (USD)
ISIN: US594918BY93
Coupon Rates: 3.300%
Maturity Dates: 06 Feb 2027

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