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Help with follwong if correct will upvote Your firm has a credit rating of A. You notice that the credit spread for five year maturity
Help with follwong if correct will upvote
Your firm has a credit rating of A. You notice that the credit spread for five year maturity Adebt is 87 basis points (0.87%). Your firm's five-year debt has an annual coupon rate of 6.2%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 22% What should be the price of your outstanding five-year bonds? Assume $1,000 face value Assuming a $1.000 face value, the price of the bond is $(Round to the nearest cent.) Step by Step Solution
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