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Your firm has a credit rating of A. You notice that the credit spread for 10-year maturity debt with a credit rating of A is

Your firm has a credit rating of A. You notice that the credit spread for 10-year maturity debt with a credit rating of A is 100 basis points (1%). Your firms ten-year debt has a coupon rate of 1.2% and face value of $1,000. You see that new 10-year Treasury notes are being issued at par with a coupon rate of 1.5%. What should the price of your outstanding 10-year bonds be?

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