Question: please help me solve this task asap A BBB-rated corporate bond has a yeild to maturity of 8,2%. A US Treasury security has a yield
A BBB-rated corporate bond has a yeild to maturity of 8,2%. A US Treasury security has a yield to maturity of 6,5%. These yields are quoted as annual percentage rate (APR) with semiannual compounding. Both bonds pay semiannual coupons at a rate of 7%, have 5 years to maturity and their par value =$100 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
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