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A Ba8-rated corporate bond has a yeid to maturify of 8.4%. A U. S. Treasury securily has a yield to maturity of 6.5%. These yelds

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A Ba8-rated corporate bond has a yeid to maturify of 8.4%. A U. S. Treasury securily has a yield to maturity of 6.5%. These yelds are quoted as APRs with serriannual compounding Boh bonds pey semi-annual coupons at a rate of 7.1% and have five years to maturity. a. What is the price (expressed as a percentage of the tace value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value) of the Ge8-raled corporace bond? c. What is the credin spread on the BeB bends? a. What is the price (expressed as a percentage of the toce yalue) of the Treasury bond? The price of the Treasury bond as as percentage of face value is 6. (Round to three decinal places.)

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