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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 88 basis points (
Posted: Fri Mar 04, 2022 9:44 am
by answerhappygod
- Your Firm Has A Credit Rating Of A You Notice That The Credit Spread For Five Year Maturity A Debt Is 88 Basis Points 1 (46.87 KiB) Viewed 44 times
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 88 basis points (0.88%). Your firm's five-year debt has an annual coupon rate of 6.1%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 1.9%. What should be the price of your outstanding five-year bonds? The price of the bond is $ (Round to the nearest cent.)