Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 79 basis points (0.79%). Your firm's five-year has semi-annual coupons and a coupon rate of 8%. 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.

Question: The price of your outstanding five-year bonds should be:

Round to the nearest cent.