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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 83 basis points (0.83%). Your
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 83 basis points (0.83%). Your firm's five-year debt has an annual coupon rate of 5.8%. 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? The price of the bond is $. (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $900.15 and a yield to maturity of 5.7%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
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