A$$ BBB$-$rated corporate bond has a yield to maturity of

$7\mathrm{.}8\%7\mathrm{.}8\%.$

A U$.$S$.$ Treasury security has a yield to maturity of

$6\mathrm{.}2\%6\mathrm{.}2\%.$

These yields are quoted as

APRs

with semiannual compounding. Both bonds pay$$ semi$-$annual coupons at a rate of

$6\mathrm{.}5\%6\mathrm{.}5\%$

and have

$55$

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?

Question content area bottom

Part $1$

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

enter your response here$\%.$

$($Round to three decimal$$ places.$)$