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Business, 21.10.2020 17:01 dh29229

Your firm has a credit rating of BBB. You notice the credit spread for 5yr maturity BBB debt is 1.1% or 110 basis points. Your firm's 5yr debt has a coupon rate of 6% with annual payments. You see that new 5yr Treasury bonds are being issued at par with a coupon rate of 2.6%. What should the price of your outstanding 5yr bonds be per $100 face value? a. $110.33.b. $115.75.c. $123.71.d. $112.54.

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