A risk analyst seeks to find out the credit-linked yield spread on a BB-rated one-year coupon bond issued by a multinational petroleum company. If the prevailing annual risk-free rate is 2.85%, the default rate for BB-rated bonds is 3%, and the loss given default is 55%, then, using the exact formula:

a. What is the spread of the bond relative to the risk-free Treasury of similar maturity? Round your answer to two decimals.

b. What is the yield to maturity of the bond? Round your answer to two decimals.