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your firm has a credit rating of A. Notice that the credit spread for five years maturity is 83 basis point(0.83%) your firm's five year
your firm has a credit rating of A. Notice that the credit spread for five years maturity is 83 basis point(0.83%) your firm's five year dept has an annual coupon rate of 6.3%. You see that new five year Treasury notes are being issued at par with an annual coupon rate of 2% what should be the price of your outstanding five year bonds?
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