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Your Firm had a credit rating of A. You notice that the credit spread for five-year maturity A debt is 81 basis points (.81). Your
Your Firm had a credit rating of A. You notice that the credit spread for five-year maturity A debt is 81 basis points (.81). Your firm's five year debt has an annual coupon rate of 5.8%. You see that new five year Treasurey notes are being issued at par with an annual coupon rate of 2%. What should be the price of your outstanding five year bonds? Assume $1000 face value
Assuming a st, 000 tace value, the poce of the bond s: (Bouns to the nearsis cent) Step by Step Solution
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