Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 87 basis points (0 87%). Your firm's five ye? 800 ASS new five-year Treasury notes are being issued at par with an annual coupon rate of 1.7% What should be the price of your outstanding five-year bonds? Assume $1,000 face value Assuming a $1,000 face value, the price of the bond is $(Round to the nearest cent)

Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 87 basis points (0 87%). Your firm's five ye? 800 ASS new five-year Treasury notes are being issued at par with an annual coupon rate of 1.7% What should be the price of your outstanding five-year bonds? Assume $1,000 face value Assuming a $1,000 face value, the price of the bond is $(Round to the nearest cent)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 16P

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