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A firm issues two-year bonds with a coupon rate of 6.4%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%. New two-year

image text in transcribed A firm issues two-year bonds with a coupon rate of 6.4%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%. New two-year Treasury notes are being issued at par with a coupon rate of 3.5%. What should the price of the firm's outstanding two-year bonds be per $100 of face value? A. $145.58 B. $103.98 C. $83.19 D. $124.78

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