ABBB-rated corporate bond has a yield to maturity of 7.5 %. A U.S. treasury security has a yield to maturity of 5.8%. These yields are quoted as APRs with semiannual compounding. Both bonds paysemi-annual coupons at a rate of 6.1 % and have five years to maturity.

a. What is the price(expressed as a percentage of the facevalue) of the treasurybond?

b. What is the price(expressed as a percentage of the facevalue) of theBBB-rated corporatebond?

c. What is the credit spread on the BBBbonds?

a. IIl'tlhat is the price {expressed as a percentage cf the face value]: cf the treasury hand? The price at the treasury hcnd as a percentage cf face value is DEE. {Reund ta three decimal places.) In. What is the price {expressed as a percentage cf the face value] cf the BBB-rated carpcrate hand? The price at the BBB-rated ccrpcrate band as a percentage at face value is Elsi. {Rcu nd tc three decimal places.) c. IIl'tlhat is the credit spread en the BBB bends? The credit spread on the BBB hands is Elli-'3. {Reund tc twp decimal places.)