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Your firm has a credit rating of A . You notice that the credit spread for five - year maturity A debt is 8 7
Your firm has a credit rating of A You notice that the credit spread for fiveyear maturity A debt is basis points Your firm's fiveyear debt has a coupon rate of with semiannual coupons. You see that new fiveyear Treasury notes are being issued at par with a coupon rate of What should be the price of your outstanding fiveyear bonds per $ face value.
The price of the bond is $
Round to the nearest cent.
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