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Business, 30.03.2020 23:47 hickslily9

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 an annual coupon rate of 6.5 %. 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?

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