A BBB bond has a coupon rate of 5.2%, matures in 5 years and trades at...
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A BBB bond has a coupon rate of 5.2%, matures in 5 years and trades at a discount to par. A 5-year treasury bond makes coupon payments on the same days as the BBB bond. It has a coupon rate of 3.1% and trades at a premium to par. Then the BBB bond's credit spread must be: A. greater than 2.1% B. equal to 2.1% C. less than 2.1% OD. equal to 0% A BBB bond has a coupon rate of 5.2%, matures in 5 years and trades at a discount to par. A 5-year treasury bond makes coupon payments on the same days as the BBB bond. It has a coupon rate of 3.1% and trades at a premium to par. Then the BBB bond's credit spread must be: A. greater than 2.1% B. equal to 2.1% C. less than 2.1% OD. equal to 0%
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