Question: help please A BBB-rabed comorate bond has a yold to maturity of 10.5%. A U.S. Treasury security has a yieid to maturity of B.7W. These
A BBB-rabed comorate bond has a yold to maturity of 10.5%. A U.S. Treasury security has a yieid to maturity of B.7W. These yields aro quotod as APRs wimh somiarnus compounding. Both bonds pay sem-anmual coupons at a rate of 9.5% and have five years lo maturity. a. What is the poice (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percenage of the face value) of the BB8-rated corporase bond? c. What is the eredt spread on the Bes 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 tace value is is. (Round to three decimal places)
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