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A. BBB-rated corporate bond has a yield to maturity of 8.3%. A U.S. Treasury security has a yiold to maturity of 6.8%. These yields are

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A. BBB-rated corporate bond has a yield to maturity of 8.3%. A U.S. Treasury security has a yiold to maturity of 6.8%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 7.7% and have five 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 percentige of the face value) of the BBB rated corporate bond? c. What is the credt spread on the BBB bonds? a. What is the price (expressed as a percentage of the face value) of the Treasury bond? The poce of the Treasury bond as a percentage of tace value is (Round to three decimal places.) b. What is the price (axpressed as a percentage of the face value) of the B8B-rated corporate bond? The price of the B8B-rated corporate bond as a percentage of face value is th. (Round to three decimal placet.)

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