medium · Debt Capital Markets pricing-yields-curve
A DCM banker is pricing a new 7-year corporate bond. The issuer's 6-year bond trades at a Z-spread of 95 bps and its 8-year bond trades at 110 bps.
If the typical new-issue concession (NIC) in the current market is 8 bps, what is the appropriate reoffer spread?
- 118.0 bps
- 110.5 bps
- 103.0 bps
- 102.5 bps
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