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A BBB-rated corporate bond has a yield to maturity of 13 8% AUS Treasury security has a yield to matunity of 120% These yields are

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A BBB-rated corporate bond has a yield to maturity of 13 8% AUS Treasury security has a yield to matunity of 120% These yields are quoted as APRs with semiannual compounding Both bonds pay semi-annual coupons at a rate of 12.1% 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 percentage of the face value) of the BBB-rated 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 100 565 % (Round to three decimal places) b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? The price of the BBB-rated corporate bond as a percentage of face value is % (Round to three decimal places)

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