Your firm has a credit rating of Baa. You notice that the credit spread for five-year maturity Baa debt is 150 basis points (1.50%). Your firm is issuing a five-year 5% semiannual coupon bond. You see that new five-year Treasury notes are being issued at par with a coupon rate of 3.5%. Should your bond be issued at par, at a discount, or at a premium?

Par

Explanation:

The credit spread measures the difference between the risk free rate/ yield for a certain type of security and the yield the security offers.

The credit spread here is 1.50%.

The risk free rate is 3.5%.

The expected yield in the market for the type of security you are issuing is therefore:

= 3.5% + 1.50%

= 5.00%

Your Baa bond is expected to have a yield of 5% which is the coupon rate you are issuing it at.

Bond will therefore be issued at Par which is what happens when the Coupon and the Yield are equal.

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.

answer; intensive use of a sales force and is relatively costly;