A BBB-rated corporate bond has a yield to maturity of 7.7%. A U.S. Treasury security has a yield to maturity of 5.8%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 6.6% and have 5 years to maturity. Round to three decimal places. A Chegg expert has yet to answer this right.

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?