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The $1,000 bonds of ANZ, issued 5 years ago with a coupon rate of 5.4% paid semi-annually, currently have a yield-to-maturity of 3.75%, which
The $1,000 bonds of ANZ, issued 5 years ago with a coupon rate of 5.4% paid semi-annually, currently have a yield-to-maturity of 3.75%, which means they are trading for $1,136.54. At the same time, Treasury bonds with the same term to maturity are trading for $1,107.49, which means they have a yield-to- maturity of 0.87%. Considering this information, what is the credit spread on ANZ bonds?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
