A firm issues 5-year bonds with a coupon rate of 4.7%, paid semiannually. The credit spread for this firm's 5-year debt is 1.2%. New 5-year Treasury notes are being issued at par with a coupon rate of 5.1%. What should the price of the firm's outstanding 5-year bonds be if their face value is $1,000?

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A) Calculate the PV of the bond with FV = $1,000, 11ea84dc_f56c_04be_9a63_6928f1411ac3_TB1316_11_TB1316_11 11ea84dc_f56c_04bf_9a63_45a0344a5c23_TB1316_11_TB1316_11 and 11ea84dc_f56c_04c0_9a63_5789da4d7f14_TB1316_11_TB1316_11 11ea84dc_f56c_04c1_9a63_c383393416a9_TB1316_11_TB1316_11

A Firm Issues 5-Year Bonds with a Coupon Rate of 4.7