hard · Debt Capital Markets pricing-yields-curve

An industrial issuer has a 6-year bond trading at a Z-spread of 120 bps and an 8-year bond at 150 bps.

If the banker estimates a new-issue concession of 10 bps for a new 7-year benchmark, what is the expected reoffer spread?

  1. 145 bps
  2. 130 bps
  3. 160 bps
  4. 135 bps

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