Derrick Chavez $03/07/2510$:$13$ PM

Qion

Pat $3$ of $3$

Completed: $7$ of $9$

My scors: $69$ pts $(86\mathrm{.}67\%4)$

A BBB$-$rated corporate bond has a yield to maturity of $7\mathrm{.}4\%.$ A U$.$S$.$ Treasury security has a yield to matrity of $5\mathrm{.}9\%.$ These yields are quoted as APRas with semiarnual compounding. Both bonds pay semi$-$annual coupons at a rate of $6\mathrm{.}4\%$ and have $5$ years to maturity.

a$.$ What is the price $($expressed as a percentage of the face value$)$ of the Treasury bond?

b$.$ What is the price $($expressed as a percentage of the face value$)$ of the BBB$-$rated copporate bond?

c$.$ What is the credit spread on the BBB bonds?

a$.$ What is the price $($expressed as a percentage of the face value$)$ of the Treasury bond?

The price of the Treasury bond as a percentage of face value is $102\mathrm{.}138\%.($Round to trree decimal places.$)$

b$.$ What is the price $($expressed as a percentage of the face value$)$ of the B$8$B$-$rated copporate bond?

The price of the BBB$-$rated corporate bond as a percentage of face value is ${95\mathrm{.}883}^3\%.($Round to trree decimal places$))$

c$.$ What is the credif spread on the BBB bonds?

The credit spread on the BBB bonds is $6.($Round to one decimal place.$)$A BBB$-$rated corporate bond has a yield to maturly of $7\mathrm{.}4\%.$ A U$.$S$.$ Treasury security has a yield to maturity of $5\mathrm{.}9\%.$ These yieids are quoled as APRes wath semimenal compounding. Both bonds pay semi$-$annual coupons at a rate of $6\mathrm{.}4\%$ and have $5$ years to maturly.

a$.$ What is the price $($expressed as a percentage of the face value$)$ of the Treasury bond?

b$.$ What is the price $($expressed as a percentage of the face value$)$ of the BBB$-$rated corporate bond?

c$.$ What is the credit spread on the B$8$B bonds?

a$.$ What is the price $($expressed as a percentage of the face value$)$ of the Treasiry bond?

The price of the Treasury bond as a percentage of face value is $102\mathrm{.}138\%.($Round to tree decimal places$)$

b$.$ What is the price $($expressed as a percentage of the face value$)$ of the B$8$B$-$rated corporate bond?

The price of the BBB$-$rated corporate bond as a percentage of face value is ${95883}^2\%.($Round to tree decimal places$)$

c$.$ What is the credi spread on the BBB bonds?

The credit spread on the B$88$ bonds is $$ K$.($Round to one decimal place.$)$