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A BBB - rated corporate bond has a yield to maturitiy of 8 . 2 % . A U . S . Treasury security has
A BBBrated corporate bond has a yield to maturitiy of A US Treasury security has a yield fo maturity of These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of and have years to maturity and $ face value. What is the price expressed as a percentage of the face value of the treasury bond? What is the price expressed as a percentage of the face value of the BBBrated corporate bond? What is the credit spread on the BBB Bonds?
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