Question: please give the exact answer for the quistions i will rate thank you 0 Your firm has a credit rating of A. You notice that


please give the exact answer for the quistions
i will rate
thank you
0 Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 80 basis points (0.80%). Your firm's five-year debt has an annual coupon rate of 6.1%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 1.7%. What should be the price of your outstanding five-year bonds? The price of the bond is $ (Round to the nearest cent.) A BBB-rated corporate bond has a yield to maturity of 4.6%. A U.S. treasury security has a yield to maturity of 3.1%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 3.2% 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.) b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? The price of the BBB-rated corporate bond as a percentage of face value is %. (Round to three decimal places.) c. What is the credit spread on the BBB bonds? The credit spread on the BBB bonds is %. (Round to two decimal places.)
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