Hi, This is question I don't understand. I know the answer should be 105.34. But I don't know why. Also, can you tell me what equation you use in this problem. because I am not clear what equation should I use in this problem.

Short practice quiz to help you study . This will not be included in your grade . You may ta it as many times as you like . Question 2 1 pts A firm issues two - year bonds with a coupon rate of 6 . 7 % , 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 . 1 % . What should the price of the firm's outstanding two - year bonds be per $100 of face value ?" 0 $84.27 0 $126.40 0 $105. 34 0 $147.47