Question: Please answer the following a b and c A BBB-rated corporate bond has a yield to maturity of 10.0%. A U.S. treasury security has a
A BBB-rated corporate bond has a yield to maturity of 10.0%. A U.S. treasury security has a yield to maturity of 8.4%. These yields are as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 92% and have five 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 corporate 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 $(Round to three decimal places.) va t is the price (expressed as a percentage of the face value) of the 888-rated corporate bond? % Round to three decimal places. The price of the c. What is the credit spread on the BBB bonds? Enter your answer in each of the answer boxes. BBB-rated corporate bond as a percentage of face value is fe
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