medium · Debt Capital Markets pricing-yields-curve
A B2/B-rated issuer is seeking to price a new 5-year senior unsecured bond. The issuer has an existing 4-year bond trading at a Z-spread of 380 bps and a 7-year bond trading at 440 bps.
If the market requires a 15 bps new-issue concession, at what spread should the bond be priced relative to the benchmark?
- 415 bps
- 395 bps
- 425 bps
- 455 bps
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