Question: On January 1 0 , 2 0 2 5 , Company XYZ issued 1 0 - year maturity bonds that were associated with a default

On January 10,2025, Company XYZ issued 10-year maturity bonds that were associated with a default spread of 1.25%. Company XYZ was able to sell those bonds for a price equal to the face value, i.e., $1,000. What was the coupon rate for those bonds?

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