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Your task is to analyse one of the Coles (COL) outstanding bonds. First, compute the credit spread of this bond, by comparing the yield-to-maturity on

Your task is to analyse one of the Coles (COL) outstanding bonds. First, compute the credit spread of this bond, by comparing the yield-to-maturity on this bond with the yield on Treasury bonds of comparable duration.

Second, estimate the bond's price one year from now (assuming that interest rates will remain constant), and comment on the reason behind the expected price change (if any) from the current price of the bond.

Finally, provide a credit rating for the firm's bonds, based on your analysis of the company bond, and explain why you have given this rating.

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