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Your firm has a credit rating of AA. You notice that the credit spread for 10-year maturity debt is 90 basis points (0.90%). Your firm's
Your firm has a credit rating of AA. You notice that the credit spread for 10-year maturity debt is 90 basis points (0.90%). Your firm's 10-year debt has a coupon rate of 5%. You see that new 10-year Treasury bonds are being issued at par with a coupon rate of 4.5%. What should be the price of your outstanding 10- bonds? ear
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