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A BBB-rated corporate bond has a yield to maturity of 9 7%. A U S treasury security has a yield to maturity of 8.3% These
A BBB-rated corporate bond has a yield to maturity of 9 7%. A U S treasury security has a yield to maturity of 8.3% These yields are quoted as APRs with semiannual compounding Both bonds pay semi-annual coupons at a rate of 8.4% 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? 96 (Round to three decimal places ) The price of the treasury bond as a percentage of face value is Enter your answef in the answer box and then dlick Check Answer parts remaining
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