A BBB$-$rated corporate bond has a yield to maturity of $8\mathrm{.}2\%.$ A U$.$S$.$ Treasury security

has a yield to maturity of $6\mathrm{.}5\%.$ These yields are quoted as APRs with semiannual compounding.

Both bonds pay semiannual coupons at a rate of $7\%$ and have five years to maturity. Assume

$$1,000$ face value.

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? $($Hint: It$$s just the difference in YTMs$...)$