A BBB$-$rated corporate bond has a yield to maturity of $11\mathrm{.}2\%.$ A U$.$S$.$ Treasury security has a yield to maturity of $9\mathrm{.}3\%.$ These yields are quoted as APRs with semiaririual compounding. Both bonds pay semi$-$annual coupons at ate of $10\mathrm{.}0\%$ 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?

ANSWER A$-$C