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A corporate bond matures in 2 years, pays semi-annual coupons, has a coupon rate of...

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A corporate bond matures in 2 years, pays semi-annual coupons, has a coupon rate of 5.8% and a AA credit rating. A 2-year Treasury bond that makes payments on the same days as the corporate bond has a yield to maturity of 1.9% (APR, semiannual compounding). The credit spread on AA bonds is 88 basis points (0.88%). What should be the price of the corporate bond? Assume a $1,000 face value

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