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Part $1$

A$$ BBB$-$rated corporate bond has a yield to maturity of $12\mathrm{.}4\%.$ A U$.$S$.$ Treasury security has a yield to maturity of $10\mathrm{.}8\%.$ These yields are quoted as APRs with semiannual compounding. Both bonds pay$$ semi$-$annual coupons at a rate of $11\mathrm{.}2\%$ 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 corporate$$ bond?

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

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Part $1$

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

$$

enter your response here$\%.($Round to three decimal$$ places.$)$