Question: A firm issues two - year bonds with a coupon rate of 6.3%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%.

A firm issues two - year bonds with a coupon rate of 6.3%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%. New two-yoar Treasury notos are being issued at par with a coupon rate of 3.4%. What should the price of the firm's outstanding two - year bonds be per $100 of face value? A. $103.99 B. $124.79 C. $83.19 D. $145.58 What is the coupon rate of a five - year, $10,000 bond with semiannual coupons and a price of $8,879.52, if it has a yield to maturity of 6.7% ? A. 3.3% B. 4.119% C. 4.94% D. 5.77%
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