What is the incentive value of the deal

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Question 1: A fixed-rate corporate bond is first offered to potential investors at a coupon rate of 4.50% (assuming a face value of $100). Following the initial bids made to the investment bank, the deal is repriced to be offered at a yield to maturity of 4.65%. What is the incentive value of the deal and discuss why this incentive would be offered?

Reference no: EM132595845

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