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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 89 basis points (0.89%). Your
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 89 basis points (0.89%). Your firm's five-year debt has an annual coupon rate of 5.6%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 2.2%. What should be the price of your outstanding five-year bonds? The price of the bond is $. (Round to the nearest cent.)
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