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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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