Question: The answer $99.77 is wrong please solve Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A

The answer $99.77 is wrong please solve The answer $99.77 is wrong please solve Your firm has a credit

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 has semi-annual coupons and a coupon rate of 4%. You see that new five-year Government of Canada bonds are being issued with a YTM of 2%. What should the price of your outstanding five-year bonds be? Assume a par value of $100. The price of your outstanding five-year bonds should be $ (Round to the nearest cent.)

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