A bond issued by General Motors (GM) pays an annual coupon rate of 8%, matures in 5 years, and has a face value (principal) of $1,000. The General Motors bond has a credit rating of BBB.

You also know the following regarding the yields of U.S. Treasury Bonds.

U.S. Treasury bond yield: Time to maturity:

1.00% 1 year

1.25% 3 years

1.50% 5 years

2.00% 10 years

3.00% 20 years

1. If the GM bonds yield to maturity is 6%, what is the value of the bond as of today?

2. Using the data above, identify the size of the spread for this bond as of today.