Exxon mobil corp rated aaa by sampp issues an 8-year 1000, Ask an Expert

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Exxon Mobil Corp. (rated AAA by S&P) issues an 8-year $1000 par value bond that pays semi-annual coupons. Coupon rate is 3.5%. The bond is priced at $1306.59. At the same time Valero Corp. (rated BBB by S&P) issues a similar bond with same maturity, par value, and coupon rate. However, the coupon frequency is quarterly. The BBB-AAA spread is 2.6%. Find the bond price of Valero Corp.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92392008

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