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Price of the firm outstanding ten-year bonds

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Your boss indicates that he may be purchasing bonds as an investment. He asks you to comment: Firm A issues ten-year bonds with a coupon rate of 6.5%, paid semi-annually. 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?

Reference no: EM133119321

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