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    SweetP33 Posts: 1, Reputation: 1
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    Aug 11, 2013, 06:01 AM
    judy johnson is choosing between investing in two treasury
    Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $1,000. a. What is its price if investors’ required rate of return is 6.09 percent on similar bonds? Treasury notes pay interest semiannually.
    b. Erron Corporation wants to issue five-year notes but investors require a credit risk spread of 3 percentage points. What is the anticipated coupon rate on the Erron notes?
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    J_9 Posts: 40,298, Reputation: 5646
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    Aug 11, 2013, 06:03 AM
    What do you think the answer is? We are willing to help you, but site rules prohibit us from giving you the answer outright.
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    jackie_m Posts: 1, Reputation: 1
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    Nov 22, 2013, 11:19 AM
    6+3=9 % for the coupon rate
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