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Business, 26.09.2019 22:20 yassinesayedahmad1

Your firm has a credit rating of a. you notice that the credit spread for five-year maturity a debt is 85 basis points (0.85%). your firm’s five-year debt has a coupon rate of 6%. you see that new five-year treasury notes are being issued at par with a coupon rate of 2.0%. what should the price of your outstanding five-year bonds be per $100 of face value?

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