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Your firm has a credit rating of A . You notice that the credit spread for five - year maturity a debt is 8 9

Your firm has a credit rating of A. You notice that the credit spread for five-year maturity a debt is 89 basis points left parenthesis 0.89% right parenthesis . 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 2%. 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 your answer to the nearest cent.

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