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can someone help me with these parts of this prectice problem i do not understand A BBB rated corporate bond has a yield to maturity
can someone help me with these parts of this prectice problem i do not understand
A BBB rated corporate bond has a yield to maturity of 135% AUS treasury security has a yield to maturity of 11 9% These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 12.9% and have five years to maturity a. What is the prica (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? a. What is the price (expressed as a percentage of the face value) of the treasury bond? The price of the treasury bond as a percentage of face value is 0% (Round to throw decimal places) Step by Step Solution
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