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K A firm issues two-year bonds with a coupon rate of 6.9%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%.

K A firm issues two-year bonds with a coupon rate of 6.9%, 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 3.3%. What should the price of the firm's outstanding two-year bonds be per $100 of face value? A. $147.45 B. $126.39 C. $84.26 D. $105.32

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