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Using Hard Currency Credit Calculator: 1 0 - year US Treasury yields 2 . 7 5 % . Benin sovereign credit spread is 2 .
Using Hard Currency Credit Calculator: year US Treasury yields Benin sovereign credit spread is above US Treasury. Benin quasisovereign credit spread is above Benins sovereign spread. Benin BigBank, a private company, has a credit spread higher than the Benin quasisovereign spread. Benin BigBank, a private company, has a year US$ bond with an annual coupon of Imagine that US Treasury yields immediately rise to and the Benin sovereign and quasisovereign spreads do not change. If Benin BigBanks spread widens to above the quasisovereign, what gain or loss should be made on $ of Benin BigBanks year bond?
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