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Primula Corporation decides to issue a 3 0 - year corporate bond. The bond carries a coupon of 6 % , which represents the underlying
Primula Corporation decides to issue a year corporate bond. The bond carries a coupon of which
represents the underlying Year Treasury Note yield of plus a credit spread. If the yieldtomaturity
YTM of the bond at issuance is also what is the price of the bond? A year later, the Year Treasury still
yields but the Primula credit spread has widened to What is the new price of the bond? If you decided
to buy $ worth of Primula bonds at a yield of what is the NPV of that purchase?
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