Question 23If single-A credit spreads are 45bps, and 5 year treasury yields are 8% (annual), what priceshould an investor be willing to pay for the 5 year Merck bond[ Select ]Choose the closest answer.Question 23If single-A credit spreads are 45bps, and 5 year treasury yields are 8% (annual), what priceshould an investor be willing to pay for the 5 year Merck bondV[Select ]96.00100.00106.00116.002nte

Price of bond is present value of the of bond par and coupon payment.

Answered: f single-A credit spreads are 45bps,…

f single-A credit spreads are 45bps, and 5 year treasury yields are 8% (annual), wha hould an investor be willing to pay for the 5 year Merck bond Select ] noose the closest answer.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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