A firm issues 10-year bonds with a coupon rate of 4.5%, paid semiannually. The credit spread for this firm's 10-year debt is 1.2 %. New 10-year Treasury notes are being issued at par with a coupon rate of 5.3%. What should the price of the firm's outstanding 10-year bonds be if their face value is $1000? OA. $854.61 OB. $683 69 OC. $24.00 OD. $1,196.45

A firm issues 10-year bonds with a coupon rate of 4.5%, paid semiannually. The credit spread for this firm's 10-year debt is 1.2 %. New 10-year Treasury notes are being issued at par with a coupon rate of 5.3%. What should the price of the firm's outstanding 10-year bonds be if their face value is $1000? OA. $854.61 OB. $683 69 OC. $24.00 OD. $1,196.45

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8P

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