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A BBB - rated corporate bond has a yield to maturity of 6 . 3 % . A U . S . Treasury security has
A BBBrated corporate bond has a yield to maturity of A US Treasury security has a yield to maturity of These yields are quoted as APRs with
semiannual compounding. Both bonds pay semiannual coupons at a rate of and have 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 BBBrated corporate bond?
c What is the credit spread on the BBB bonds?
a What is the price expressed as a percentage of the face value of the Treasury bond?
The price of the Treasury bond as a percentage of face value is Round to three decimal places.
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