Use the information for the question(s) below. 
-A firm issues 10-year bonds with a coupon rate of 6.5%, paid semi-annually. The credit spread for this firm's 10-year debt is 0.8%. New 10-year Treasury bonds are being issued at par with a coupon rate of 5%. What should the price of the firm's outstanding 10-year bonds be per $100 of face value?
A) $98.27
B) $100.86
C) $105.26
D) $97.28
Correct Answer:
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