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Your firm has a credit rating of BBB.  You notice the credit spread for 5yr maturity BBB...

Your firm has a credit rating of BBB.  You notice the credit spread for 5yr maturity BBB debt is 1.1% or 110 basis points.  Your firm's 5yr debt has a coupon rate of 6% with annual payments.  You see that new 5yr Treasury bonds are being issued at par with a coupon rate of 2.6%.  What should the price of your outstanding 5yr bonds be per $100 face value?   

$110.33

$115.75

$123.71

$112.54
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