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A BBB-rated corporate bond has a yeld to maturity of 12.4%. A U.S. Treasury security has a yeld to maturity of 10.6%. These yields are

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A BBB-rated corporate bond has a yeld to maturity of 12.4%. A U.S. Treasury security has a yeld to maturity of 10.6%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 10.9% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the Treasury bend? 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 BB8 bonds? a. What is the price (expressed as a percentage of the tace value) of the Treasury bond? The prion of the Treasury bond as a percentage of tace value is (Round to these decimal places)

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