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 3%, the default rate for BB-rated bonds is 7%, and the loss given default is 60%, then, using the exact formula:

a. What is the spread of the bond relative to the risk-free Treasury of similar maturity ? % 4.52 Round your answer to two decimals.

b. What is the yield to maturity of the bond? %7.52 Round your answer to two decimals.