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baileymeredith baileymeredith
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4 years ago
A firm issues ten-year bonds with a coupon rate of 6.5%, paid semiannually. The credit spread for this firm's ten-year debt is 0.8%. New ten-year Treasury notes are being issued at par with a coupon rate of 5%. What should the price of the firm's outstanding ten-year bonds be per $100 of face value?

▸ $98.27

▸ $100.86

▸ $97.28

▸ $105.26
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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wrote...
4 years ago
$105.26
wrote...
4 years ago
Thank you, thank you, thank you!
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