A firm issues 20-year bonds with a coupon rate of 4.8%, paid semiannually. The credit spread forthis firm's 20-year debt is 1.2%. New 20-year Treasury bonds are being issued at par with a coupon rate of 4.6%. What should the price of the firm's outstanding 20-year bonds be if their face value is $1000?

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The Answer of A firm issues 20-year bonds with a coupon rate of 4.8%, paid semiannually. The credit spread forthis firm's 20-year debt is 1.2%. New 20-year Treasury bonds are being issued at par with a coupon rate of 4.6%. What should the price of the firm's outstanding 20-year bonds be if their face value is $1000?

A Firm Issues 20-Year Bonds with a Coupon Rate of 4.8