Question $11,$ Problem $6-28$

HW Score: $62\mathrm{.}5\%,7\mathrm{.}5$ of $12$ points

Points: $0$ of $1$

Your firm has a credit rating of A$.$ You notice that the credit spread for five$-$year maturity A debt is $91$ basis points $(0\mathrm{.}91\%).$ Your firm's five$-$year has semi$-$annual coupons and a coupon rate of $4\%.$ You see that new five$-$year Government of Canada bonds are being issued with a YTM of $3\%.$ What should the price of your outstanding five$-$year bonds be$?$ Assume a par value of $$100.$

The price of your outstanding five$-$year bonds should be $

$($Round to the nearest cent.$)$