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your firm has a credit rating of A . You notice that the credit spread for 5 - year maturity A debt is 8 5

your firm has a credit rating of A. You notice that the credit spread for 5-year maturity A debt is 85 basis points (0.85%). Your firms 5-year has semi annual coupons and a coupon rate of 4%. You see that new 5 year Government of Canada bonds are being issued with YTM of 2%. What should the price of your outstanding 5 year bonds be? Assume a par value of $100.

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