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Business, 09.10.2021 14:00 sweeps8758

Use the following information to answer the question. Assume coupons are paid annually unless otherwise stated. Years Face Coupon Market Security Rating Maturity Value Rate Price Treasury 1 $ 1,000 0.00% $ 978.47 Treasury 5 $ 1,000 4.00% $ 1,018.01 Treasury 7 $ 1,000 3.80% $ 993.98 Treasury 10 $ 1,000 4.20% $ 992.01 Treasury 20 $ 1,000 5.40% $ 1,037.07 Corp X A 7 $ 1,000 5.25% $ 1,000.00 Corp Y BB 10 $ 1,000 7.10% $ 962.50 Corp Z AA 20 $ 1,000 7.25% $ 1,137.08 We have been contacted by an investor who is offering 5 year BB bonds with a 5.5% coupon paid semi-annuallly. What is the most that we should offer for these bonds

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