Use the following information for this question: Rating Credit Spread AAA 0.50% AA 0.75% BBB 2.00%...

Use the following information for this question:

Rating Credit Spread

AAA 0.50%

AA 0.75%

BBB 2.00%

10 year treasury bonds ($100 Par value) with semi-annual coupons and a 6% coupon rate have a price of $95.00.

If your company is issuing new semi-annual 10 year bonds at par, what coupon rate must they have if they are rated BBB?

Expert Solution

jeff jeffy answered 1 year ago

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