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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 81 basis points (
Posted: Mon Apr 25, 2022 8:45 am
by answerhappygod
- Your Firm Has A Credit Rating Of A You Notice That The Credit Spread For Five Year Maturity A Debt Is 81 Basis Points 1 (14.01 KiB) Viewed 25 times
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 81 basis points (0.81%). 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? Assume $1,000 face value.