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Please explain by steps A firm issues 5- year bonds with a coupon rate of 4.7%, paid semiannually. The credit spread for this firm's 5-
Please explain by steps
A firm issues 5- year bonds with a coupon rate of 4.7%, paid semiannually. The credit spread for this firm's 5- year debt is 1.2%. New 5- year Treasury notes are being issued at par with a coupon rate of 5.1%. What should the price of the firm's outstanding 5- year bonds be if their face value is $1,000?
A) $745.82 B) $932.28 C) $12.00 D) $1305.19
The correst answer is B, but how? Show steps pls
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