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

$105.34

Explanation:

Given:

=> Coupon payment: $100*3.35% = $3.35

Using present value formula in excel

pv=(rate,nper,pmt,fv)

pv = (1.95%, 4, 3.35,100)

pv = $105.34

The price of the firm's outstanding two-year bonds be per $100 of face value is:  $105.34

answer; blank(1); /rises; blank(2); //increases;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.