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please show all work and formulas used (this is from my class handout, we went over this in class) Your firm has a credit rating
please show all work and formulas used
(this is from my class handout, we went over this in class) Your firm has a credit rating of A. You notice that the credit spread of 10 -year maturity debt is 90 basis points (0.90%). Your firm's ten-year debt has a coupon rate of 5% (annually paid coupon). You see that new 10 -year. Treasury notes are being issued at par with a coupon rate of 3.41% (from the Treasury yield curve for Novembe) 2008. What should the price of your outstanding 10 -year bonds be Step by Step Solution
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