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 a coupon rate of

6.4%

with semi-annual coupons. You see that new five-year Treasury notes are being issued at par with a coupon rate of

2.4%.

What should be the price of your outstanding five-year bonds per

$100

face value.