2) Find the prices for the Treasuries in problem 1 given the following coupon information.

a) 2-year treasury has a 2.25% coupon

b) 5-year treasury has a 2.50% coupon

c) 10-year treasury has a 2.75% coupon

d) 20-year treasury has a 3.00% coupon

Here is problem 1.

Using the following data, plot (graph) the corporate A-rated yield and Treasury yield curves and calculate the default premium spread (in basis points) for each instrument.

a) 2 year corporate with a yield of 3.80% and treasury with a 2.35% yield

b) 5 year corporate with a yield of 3.90% and treasury with a 2.31% yield

c) 10 year corporate with a yield of 4.30% and treasury with a 2.51% yield

d) 20 year corporate with a yield of 4.90% and treasury with a 2.92% yield