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The credit spread for corporate bonds that have a face value of $1,000, semi-annual coupons, a coupon rate of 5.60%, and six years to maturity

The credit spread for corporate bonds that have a face value of $1,000, semi-annual coupons, a coupon rate of 5.60%, and six years to maturity is 0.90% (expressed as an APR). New Treasury notes with six years to maturity are being issued at par with a coupon rate of 4.20%. What should the price of the corporate bonds?

Question 12 options:

$974.82

$1,073.57

$1,023.61

$975.10

$1,025.57

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