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Business, 01.03.2021 21:50 hdjsjfjruejchhehd

Your firm has a credit rating of A and that the credit spread for the 5-year maturity bond is 110 basis points (1.1%). Your firm's 5-year quarterly coupon bond has a coupon rate of 8% and it is priced at $1160. Assume that new 5-year Treasury notes pay coupons quarterly and the coupon rate is 4%. What should the price of 5-year Treasury notes bond be? Assume that bonds have a face value of $1000.

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