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A BB rated corporate bond has a yield to maturity of 9 . 3 % . A US treasury security has a yield to maturity
A BB rated corporate bond has a yield to maturity of A US treasury security has a yield to maturity of These are called as a semi annual compounding. Both bonds pay semi annual coupons at a rate of and have five years to maturity.
aWhat is the price mark expressed as a percentage of the face value of the treasury bond?
B What is the price expressed as a percentage of
C What is the credit spread on the capital BBB bond?the face value on the BBB bonds?
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