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XYZ Corporation decides to issue a 30-year corporate bond. The bond carries a coupon of 6%, which represents the underlying 30-Year Treasury Note yield of

XYZ Corporation decides to issue a 30-year corporate bond. The bond carries a coupon of 6%, which represents the underlying 30-Year Treasury Note yield of 4% plus a 2% credit spread. If the yield-to-maturity of the bond at issuance is also 6%, what is the price of the bond? A year later, the 30-Year Treasury still yields 4%, but the XYZ credit spread has widened to 3%. What is the new price of the bond?

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