A BBB-rated corporate bond has a yield to maturity of 5.2%. A U.S. Treasury security has a yield to maturity of 3.4%. These yields are quoted as APRS with semiannual compoundi semi-annual coupons at a rate of 4.0% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the Treasury bond? Round to three decimal places.)

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?