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A BBB - rated corporate bond has a yield to maturitiy of 8 . 2 % . A U . S . Treasury security has

A BBB-rated corporate bond has a yield to maturitiy of 8.2%. A U.S. Treasury security has a yield fo maturity of 6.5%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 7.0% and have 5 years to maturity and $1,000 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 BBB-rated corporate bond? What is the credit spread on the BBB Bonds?

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