Anticipated coupon rate of erron corporation


Problem:

Erron Corporation wants to issue five-year notes but investors require a credit risk spread of 3 percentage points.

Required:

Question: What is the anticipated coupon rate on the Erron notes if the treasury note paying an annual coupon of 5.06?

Note: Please show the work not just the answer.

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Accounting Basics: Anticipated coupon rate of erron corporation
Reference No:- TGS0891819

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