Question: please help! 7. Your boss indicates that he may be purchasing bonds as an investment. He asks you to comment: Firm A issues ten-year bonds

please help! 7. Your boss indicates that he may be purchasing

please help!

7. Your boss indicates that he may be purchasing bonds as an investment. He asks you to comment: Firm A issues ten-year bonds with a coupon rate of 6.5%, paid semi-annually. The credit spread for this firm's ten-year debt is 0.8%. New ten-year Treasury notes are being issued at par with a coupon rate of 5%. What should the price of the firm's outstanding ten-year bonds be per $100 of face value? (4 marks)

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