A firm issues two-year bonds with a coupon rate of 6.7%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%. New two-year Treasury notes are being issued at par with a coupon rate of 3.1%. What should the price of the firm's outstanding two-year bonds be per $100 of face value?

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D) Calculate the PV of the bond with FV = $100, 11ea84dc_f56b_b69a_9a63_dbd5eb5ee2e2_TB1316_11_TB1316_11 11ea84dc_f56b_ddab_9a63_8fe55e271fdd_TB1316_11_TB1316_11 and 11ea84dc_f56b_ddac_9a63_af789ef09585_TB1316_11_TB1316_11 11ea84dc_f56b_ddad_9a63_7f906d88638f_TB1316_11_TB1316_11

A Firm Issues Two-Year Bonds with a Coupon Rate of 6.7